In case the warehouse has limited stock :Don’t send more stock to the ‘best-performing store’. Send instead limited stock where you have the best chance of selling the particular SKU. Give stock without starving stores as much as possible. For instance, let’s say that the total stock required is 10 Read more…
We need to use the below execution processes to align supply chain with actual demand: ππ§π―ππ§ππ¨π«π² ππ π π«ππ πππ’π¨π§ Store inventory higher up the supply chain. Give only as much inventory as is the immediate need of the store. Keep rest of stock in warehouses. This will allow the stock to get replenished to Read more…
1. MYTH #1: Aggregation or Disaggregation has no impact on variation. At a store, an item may sell between 10 to 100 pieces (10x Variation)For manufacturer, the difference might be 1,000 to 2,000 pieces (2x Variation). The more disaggregated the data is, the higher the variation. 2. MYTH #2: Sophisticated Read more…
Imagine a manufacturer producing a variety of products. These products are then sold through stores which are serviced by a few warehouses. Usually, the retailer will order an entire seasonβs supply of an item. The retailer will want the items to arrive before the season begins based on a forecast Read more…
Stockouts can be defined as the unavailability of specific items or products at the point of purchase when the customer is ready to buy. Many retailers underestimate the cost of stockout by as much as 300%. Focusing on increasing availability of your merchandise can be the single biggest leverage for a Read more…
By definition, good demand planning is customer focused.Β Therefore, it should be led by those who have the most contact with and the greatest understanding of the customer – that is, Sales and Marketing, and not the Supply Chain team. Demand planning MUST be integrated with marketing planning process, so that Read more…
To get at the roots of profit-destroying complexity, companies need to identify their innovation fulcrum, the point at which the level of product innovation maximizes both revenues and profits. Complexity doesn’t appear on balance sheets or on quarterly reports, but its impact can be conspicuous. Below, we offer a simple set Read more…
The focus of the traditional supply chain organization is cost management. Saving money does not drive value. Improving cost also does not necessarily improve margin. Holistic organizational thinking is a marked departure from traditional functional thinking, shifting the need for new forms of analytics and reporting. For example, today, while most organizations Read more…
“No one in the supply chain has sold till the time the end customer has bought.” This seemingly simple diktat is hard to put in practise, after all, why do I care if my customer’s customer is buying my stuff or not.Β Err.. Turns out that you should! In one Read more…
Ans: Demand Planning The biggest cost to companies is NOT the cost of employees, or raw material, or sales or even advertising.The biggest cost to companies is the imbalance between the demand for their products and the companies ability to meet the demand. Unfortunately, many companies tend to ignore this Read more…