Why do you need Dynamic Buffer Management

Published by riteshkapur on

We need to use the below execution processes to align supply chain with actual demand:

𝐃𝐲𝐧𝐚𝐦𝐢𝐜 𝐁𝐮𝐟𝐟𝐞𝐫 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭

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.

For example:
An item was selling 2 pieces every week. 
And lets say the store norm was 3 pieces. 

In the below cases, we will need to increase the store norm from 3 to higher.
– If the item now starts selling 4 pieces in a week OR 
– if the time to replenish the stock increases from 1 week to 2 weeks