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Common Demand Driven Issues: Which Do You Fix First?

Revolutionize Your Demand Driven Business

Running an efficient business is vitally important in today’s business climate. With so many variables, though, that can be an extremely daunting task to accomplish, and many ‘solutions’ are ineffective or provide minimal impact, taking years to pay for themselves. Demand Driven is a concept people think they have mastered when in reality it is the link in their chain that needs immediate attention. Let’s take a look at a few of the areas that should get special attention to make sure your business is Demand Driven.
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7 Reasons Your Inventory Optimization Software Is Not Working

Predicting the Unpredictable: Inventory Optimization Software

Inventory Optimization – nine syllables, two words, one concept. It means having what you need when you need it. Too much inventory can cut your profit margin; too little inventory can prevent you from meeting demand and tip your customers toward the competition. Sounds simple: but in reality, the inventory optimization math any supply chain process will use is as important as the metal alloy used in forging a chain of metal links. You can find cheap, plastic chains, and you can find expensive chains formed from strong metal alloys with all kinds of irresistible names and features.
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Are You Making These Mistakes With Lead Time

Lead Time is a critical link in your supply chain that can create big mistakes like overstocks and out of stocks. The industry answer to these mistakes has been Lead Time tracking. In fact, Lead Time Tracking has become a cottage industry where companies offer to track lead time and make a supplier pay a fee when they don’t conform to guidelines like on-time and fill rates.

Numerous studies have shown fines for bad behavior have made little impact toward improving business. The shocking fact from many studies is that overstocks and out of stocks occurred at an alarming rate when on time deliver and 95% + fill rates were achieved! The biggest mistakes found were the replenishment orders were placed on a date to soon or to late in relation to the days supply on hand. Sadly, most companies don’t use lead time as a key metric in their supply chain to determine an item order point. Most inventory replenishment systems today are driven by plans or open to buy spreadsheets which are top down methods to determine the item order date. There are better answers…
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The Key Reason Your Inventory Replenishment System Loses Your Money

How close are your Inventory Replenishment processes to your end customers? Inventory Replenishment controls your largest dollar investment; is it the strongest link in your chain or is it time to tighten this link in your chain? Today’s smart phones have created smarter customers with higher service expectations for their retail stores. The information super highway has shortened a retailer’s corporate decision timeline for demand planning and inventory replenishment responses to market changes. The challenge is how to become more customer centric. How do you provide higher service for your customers with the right products, in the right quantity, at the right location, all in less time?
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Do You Make These Mistakes with Inventory Optimization

Inventory Optimization is a link in your chain that is often misunderstood and misquoted at inventory meetings and sales presentations in many businesses today. Inventory Optimization issues are always easy to find – Buyers, Sales People, and inventory managers of high-volume inventories often complain that there is too much overstocked inventory of slow selling products and not enough of the inventory that is in demand. Sadly, the unnecessary inventory is tying up working capital and taking up much needed storage space. This is a major issue that lowers profits, service attained and customer opinions.
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5 Obstacles in Inventory Replenishment that Disrupt Retail Sales

Inventory replenishment: Can you see the future of retail?

Inventory replenishment is the essence of your bottom line. It is the critical link in your supply chain that everyone needs to review and tighten.

You don’t need a crystal ball to utilize the principles of demand forecasting and inventory replenishment. But, you do need a crystal-clear game plan to ensure that you can deliver today what the customer dreamed about the night before.
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4 Big Data facts that kill Supply Chain Visualization

Supply Chain Visualization is a supply chain link that is often confused with reporting and big data analysis. Tightening this link in your supply chain is a good way to solidify the base of your supply chain decision tree. Supply chain management is consumed with trying to forecast the future. With the advancement of technologies to absorb and analyze more data (big data), new technologies are needed to visualize the data and act on future events in real time without supply chain management getting lost in the avalanche of data and useless reporting.

  • Can the replenishment team and buyers address issues that come up on the fly and take action in the same system that presents the supply chain visualization?
  • Do you have an integrated picture of your supply chain? End to End Supplier to consumer?
  • Do the right people have access to valuable data?
  • Is there seamless communication between all the supply chain stakeholders- internally and externally (suppliers)?

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The-3-Demand-Driven-Secrets-that-Raise-Your-Profits-Where-Do-You-Start‘Demand Driven’ is the link missing in many supply chains. Many software sales people have muddied the term ‘Demand Driven’ with sales forecasting and demand planning to confuse the buyer. To ‘Tighten the Links in Your Chain™’, you need to determine your weak links, and of these, which will deliver the best ROI when replaced. Demand Driven concepts are often misaligned with old processes and systems. That’s why demand driven process are always a great place to look for new opportunities to improve.

What you don’t know about demand driven retail will cost you…..

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Driving Backwards in the Dark Without Lead Time Forecasting

Is Lead Time Forecasting Your Missing Link?

Lead Time is a critical link in your supply chain. For a service based inventory replenishment system, lead time is the indispensable piece to knowing when it is time to place the order. This week, we review why you should tighten this link in your supply chain.

Lead Time impacts when you place an order to avoid lost sales, it helps you avoid goods arriving early that create overstock, it helps you plan better, and drive better results…If you know the real lead time – you don’t, lead time forecasting solves the problem.
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Superior-Inventory-Optimization-Takes-Collaboration-Review-2-ThingsReview the Inventory Optimization Links in Your Chain

Inventory Optimization is often misunderstood due to the ‘creative marketing’ of many software companies that points people in the wrong direction. A well-known supply chain guru wrote an article recently stating that inventory optimization is dead. The reality is that inventory optimization should be a collection of math algorithms applied together to maximize your profit potential while meeting service goals for each product / location. The problem isn’t that this is new math; the issue is that enough people haven’t thought about the problem as a math problem. Most software isn’t written to handle the complex math fast enough to deliver dynamically updated answers to questions like ‘when should I order’ and ‘how much inventory should I carry?’
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