Rules to keep in mind for Demand planners (3/3)
7️⃣ 𝗗𝗼𝗻’𝘁 𝗼𝘃𝗲𝗿𝗹𝗼𝗼𝗸 𝗹𝗲𝗮𝗱 𝘁𝗶𝗺𝗲 𝘄𝗵𝗲𝗻 𝗶𝘁 𝗰𝗼𝗺𝗲𝘀 𝘁𝗼 𝗶𝗻𝘃𝗲𝗻𝘁𝗼𝗿𝘆 𝗺𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁.
Lead time is the time it takes for an order to be received from the supplier. So it’s important to factor in lead time when ordering inventory.
Don’t expect to find the latest designer sarees at your local market. If you wait until the day of a major festival like Diwali, it’s best to plan ahead and shop well in advance.
Don’t ignore the importance of lead time.
Lead time is the time it takes for an order to be received from the supplier. So it’s important to factor in lead time when ordering inventory.
For example, if a supplier takes 2 weeks to deliver a custom-made diamond ring:
it’s important to factor in that lead time and order accordingly to avoid stockouts.
8️⃣ 𝗗𝗼𝗻’𝘁 𝘂𝗻𝗱𝗲𝗿𝗲𝘀𝘁𝗶𝗺𝗮𝘁𝗲 𝘁𝗵𝗲 𝗶𝗺𝗽𝗮𝗰𝘁 𝗼𝗳 𝗽𝗿𝗼𝗺𝗼𝘁𝗶𝗼𝗻𝘀 𝗮𝗻𝗱 𝗺𝗮𝗿𝗸𝗲𝘁𝗶𝗻𝗴 𝗼𝗻 𝗱𝗲𝗺𝗮𝗻𝗱.
– Special promotions and
– marketing campaigns
can have a big impact on demand. So it’s important to factor them into demand forecasts and inventory management.
For example, don’t assume that a “buy one get one free” promotion on “fanny pack” purses won’t work. You might be surprised at the increased demand.
Another example: Running a “buy one get one free (Making charge)” promotion on gold bangles may increase the demand for that item category.
9️⃣ 𝗗𝗼𝗻’𝘁 𝗻𝗲𝗴𝗹𝗲𝗰𝘁 𝘁𝗵𝗲 𝗿𝗲𝗹𝗮𝘁𝗶𝗼𝗻𝘀𝗵𝗶𝗽 𝗯𝗲𝘁𝘄𝗲𝗲𝗻 𝗶𝗻𝘃𝗲𝗻𝘁𝗼𝗿𝘆 𝗺𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗮𝗻𝗱 𝗱𝗲𝗺𝗮𝗻𝗱 𝗽𝗹𝗮𝗻𝗻𝗶𝗻𝗴.
– Inventory management and
– Demand planning
go hand in hand.
It’s important to check inventory levels and adjust demand forecasts as needed. For example, don’t let your warehouse become a “fidget spinner” fortress. Keep track of inventory levels to avoid overstocking.
Don’t ignore the role of inventory management in demand planning.
Inventory management and demand planning go hand in hand.
So it’s important to track inventory levels and adjust demand forecasts as needed. For example, if inventory levels of a particular product category are high. It would be wise to reduce the demand forecast for that product category.
🔟 𝗗𝗼𝗻’𝘁 𝗯𝗲 𝗮𝗳𝗿𝗮𝗶𝗱 𝘁𝗼 𝘁𝗮𝗸𝗲 𝗮 𝗿𝗶𝘀𝗸. 𝗧𝗿𝘆 𝘀𝗼𝗺𝗲𝘁𝗵𝗶𝗻𝗴 𝗻𝗲𝘄 𝘄𝗵𝗲𝗻 𝗶𝘁 𝗰𝗼𝗺𝗲𝘀 𝘁𝗼 𝗱𝗲𝗺𝗮𝗻𝗱 𝗽𝗹𝗮𝗻𝗻𝗶𝗻𝗴 𝗮𝗻𝗱 𝗶𝗻𝘃𝗲𝗻𝘁𝗼𝗿𝘆 𝗺𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁.
Sometimes, the best way to improve is to experiment and see what works best for your business.
Don’t be afraid to experiment.
Sometimes, the best way to improve inventory management is to try new things. See what works best for your business.
For example:
Test
– different promotions and
– marketing strategies
for different item categories and measuring the impact on demand.
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