Right Stock At The Right Time
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Distribution Operations: Have the Right Stock at the Right Time www.optimizeyoursupplychain. com
Transcript of Right Stock At The Right Time
Distribution Operations:Have the Right Stock at the Right Time
www.optimizeyoursupplychain.com
• Address Common Short Falls of Traditional Inventory Forecasting
• Inventory Carrying Costs• Advantages of Leveraging a True
Inventory Forecast Management Solution
Agenda
Right Stock, Right Time: Issue 1
Single Point of Failure
Who?• Been with organization for years• Tremendous amount of “Head Knowledge”• Only person who understands the process and planning
spreadsheet.
Right Stock, Right Time: Issue 2
The Spread SheetWhy?• Untold manual inputs• Manual data and formula manipulation• Lack of business logic
Right Stock, Right Time: Issue 3
TimeWhy?• Performing multiple jobs• Manual efforts force simple planning• Organizational input bypassed
Why is this so Important
In order to remain competitive and profitable, not having the right stock in the right place at the right time WILL cost you in both hard inventory carrying costs as well as Customer and Sales Losses.
Inventory Carrying Costs
Some contributing factors:• Cost of Money• Obsolescence• Variable Storage Costs
Industry metrics have carrying costs between 15-25% of total inventory value on annual basis.
$1M inventory at very least translates to $150,000 in additional annual expense
True Forecast Management – Why?
Fact: You can build a boat that floats out of Duck Tape.
Should MasterCraft build their ski boats out of Duck Tape?
OBVIOUSLY NOT!
Your business should run like a MasterCraft …not eventually sink using Duck Tape.
True FM - #1: Business Logic
True FM - #2: System Integration
To ensure data accuracy and dramatically cut down on the amount of forecasting labor hours, a true Inventory Forecast Management System must integrate with your operations and accounting systems for data points such as:
– Open Orders– Purchase Orders– Historical Sales– Inventory by Site– Etc.
True FM - #3: Dimensional Analysis
True FM - #4: What If Analysis
True Forecast Management: – Are you trusting your forecast to manual
process and a Spreadsheet?– Do you have a mandate to reduce your
inventory costs while at the same time maintaining or increasing your Customer Service levels?
– Do you need to squeeze more profitability out of your business to meet owner and shareholder expectations?
Distribution Solution Set
For a conversation on optimizing your operations please contact us
at: Phil Sobol
Director of Vertical Solutions - Distribution
[email protected] 615.550.6903
1-888-883-9797 toll [email protected]
We Can Help!
