Inventory Management Secrets

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 availability with fewer surpluses.

The following execution processes are used to align our supply chain with actual demand:

1️⃣ 𝐈𝐧𝐯𝐞𝐧𝐭𝐨𝐫𝐲 𝐀𝐠𝐠𝐫𝐞𝐠𝐚𝐭𝐢𝐨𝐧
Aggregating inventory higher up the supply chain allows the stock to get replenished to locations that sell faster, and prevent it from getting accumulated where it does not sell.
https://lnkd.in/ggJYxJnu

2️⃣ 𝐅𝐫𝐞𝐪𝐮𝐞𝐧𝐭 𝐑𝐞-𝐬𝐮𝐩𝐩𝐥𝐲 
Frequent replenishment reduces a lot of the inventory safety downstream and allows us to respond faster to demand changes
https://lnkd.in/gyUPXYqh

3️⃣ 𝐃𝐲𝐧𝐚𝐦𝐢𝐜 𝐁𝐮𝐟𝐟𝐞𝐫 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 
Reality is dynamic. Inventory norms of every SKU throughout the supply chain are challenged every day, and based on demand and supply patterns, dynamically adjusted up or down to align our inventory with actual demand.
https://lnkd.in/g4dQv9Pu

4️⃣ 𝐒𝐦𝐚𝐫𝐭 𝐑𝐞𝐩𝐥𝐞𝐧𝐢𝐬𝐡𝐦𝐞𝐧𝐭
In case the warehouse has limited stock instead of sending the stock to the ‘best-performing store’ we need to have an algorithm that recommends the best store which will be able to sell the option at the fastest rate. The algorithm gives stock without starving stores as much as possible.
https://lnkd.in/gKxhebjz

#supplychain#demandplanning