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…
Are you building your company to be Lean or are you building it to be Agile? Cause building your company to be BOTH Lean and Agile, will only mean that you are NEITHER! Ask yourself the below 4 questions.If you really want to be good in answering Questions 1 & Read more…
Its Counter intuitive. But true.Ordering more than you actually need makes shortages worse. Typically, a retailer or manufacturer only orders as much as they think they can sell or consume until the next cycle begins. But sometimes a hot seller comes along, or you hear a part is going to Read more…
ππ―ππ«ππ¨π§ππ’πππ§ππ. Overconfidence is a set of biases rooted in an unjustified certainty in the legitimacy of oneβs opinions.In a study done, demand planners were more than 10% more likely to be overconfident that non-demand planners. This phenomenon is consistent with other research that finds for groups of people whose opinions Read more…
A low-cost strategy implies a supply chain strategy that cuts costs, and indeed, companies that follow this strategy typically favour rationalisation and synchronisation strategies over innovation and customisation. A focus strategy implies a supply chain strategy that helps to make the product or service more special in the eyes of Read more…
From the customerβs point of view, benefits result from increased efficiency, reliability, flexibility and innovation, and these are the underlying principles of SCM. These benefits manifest as the 4 main supply chain strategies for companies: 1. Rationalisation is excellence in managing the operating costs through SCM to achieve cost leadership Read more…
How can startups aim to compete with international corporations where many larger, established Indian companies are still dipping their toes? Many large companies have become ‘Vetocracy’. The system of checks and balances, replicated at every level of functioning, ensures that someone, somewhere can always block a positive action. Companies become Read more…
1. Resiliency is a philosophy (like LEAN) and not a tactic (like JIT). In the current disruptive world resilient supply chains wins business and growth.2. Balance cost, performance and resiliency. Itβs not choosing one over another but to engage right type of action to mitigate the risk with cost benefit analysis.3. Plan for Read more…