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: 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…