We need to use the below execution processes to align supply chain with actual demand:
๐๐ฒ๐ง๐๐ฆ๐ข๐ ๐๐ฎ๐๐๐๐ซ ๐๐๐ง๐๐ ๐๐ฆ๐๐ง๐ญ
Reality is dynamic.ย
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.ย
And lets say the store norm was 3 pieces.ย
In the below cases, we will need to increase the store norm from 3 to higher.
โ If the item now starts selling 4 pieces in a week ORย
โ if the time to replenish the stock increases from 1 week to 2 weeks