A lot of inventory management advice will set you up for failure. Here are 5 things you should ignore if you are getting started ๐ ๐ถ๐๐ฐ๐ผ๐ป๐ฐ๐ฒ๐ฝ๐๐ถ๐ผ๐ป ๐ญ.Always maintain high levels of safety stock to avoid stockouts.๐๐ผ ๐๐ต๐ถ๐ ๐ถ๐ป๐๐๐ฒ๐ฎ๐ฑ:Safety stock is important.But maintaining high levels of it can actually lead to excess Read more…
There are several challenges that a jewellery retailer may face: 1. ๐๐ผ๐บ๐ฝ๐ฒ๐๐ถ๐๐ถ๐ผ๐ป: There is a lot of competition in the jewellery industry, and it can be difficult for a retailer to stand out in the market. 2. ๐ฃ๐ฟ๐ถ๐ฐ๐ฒ ๐๐ฒ๐ป๐๐ถ๐๐ถ๐๐ถ๐๐: jewellery can be a significant purchase for many consumers, and price Read more…
Challenge your definitions every day for every SKU at every store. Ensure your head is always available.Keep your belly trim.Cut down your tail. Are you struggling with low inventory turnover or cash flow issues?It might be time to take a closer look at your product mix. Are all products created Read more…
As long as sales are incentivised only for volume sold into the channel and marketing only for market share, companies will never become demand-driven.To make the move on demand-driven initiatives, companies must focus on profitable sales through the channel. We want to shorten our response time to market, achieving better Read more…
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: ๐๐ง๐ฏ๐๐ง๐ญ๐จ๐ซ๐ฒ ๐๐ ๐ ๐ซ๐๐ ๐๐ญ๐ข๐จ๐ง 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 seasonโs 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.ย 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…