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: ๐๐ฒ๐ง๐๐ฆ๐ข๐ ๐๐ฎ๐๐๐๐ซ ๐๐๐ง๐๐ ๐๐ฆ๐๐ง๐ญ Reality is dynamic. Challenge Inventory norms (targets / buffer) of every SKU throughout the supply chain every day. Based on demand and supply patterns, adjust norms. This will align inventory with actual demand. 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…
Learning from the last 2 decades in retail. 1. Focus on shortening your lead time, and 2. Effective execution. Forecasts are predictions about what will happen in the future. Even though they are not always correct, we still need to make them to plan for the future. In retail, we have to Read more…
Buffer Management: Use Buffers to Measure Execution It is possible to finally establish a single priority system in execution if you have: – low Work In Process and – plans with adequate safety at project level and NOT task level, Focus on tasks according to buffer (safety) consumption. Give the highest priority Read more…
The vast majority of the elements of a system are non-constraints. Ignoring a non-constraint impacts the constraint. This results in the performance of the entire system going bad. The maxim โMore is betterโ is correct only for the constraints. It is NOT correct for the non-constraints. For the non-constraints, โmore is betterโ 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…
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…
Supply chain management (SCM) has become a complex, technology-driven discipline that reaches across functions, business processes, and corporate boundaries. Nevertheless, some CEOs pay little attention to SCM as a strategic concern and thereby squander its potential to improve overall performance. Executed well by experienced professionals, SCM can deliver significant, tangible benefits Read more…
The biggest cost for your company is: The imbalance between the demand for your products and your ability to supply them. Even in Supply Chain functions, many do not understand how their work can drive growth. Unfortunately, companies stuck in a cost-focused paradigm with significant gaps in horizontal organizational alignment Read more…