Why do you need Dynamic Buffer Management
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