The Smart Forecaster
Pursuing best practices in demand planning,
forecasting and inventory optimization
What is to blame for having too much of the stuff you don’t need and not enough of the stuff you do need? Demand and supply variability are often blamed. These problems are significant and seems impossible to overcome leaving many organizations to simply accept misallocated stock as a cost of doing business. However, the real problem it isn’t simply late supplier deliveries and unpredictable demand. These are supply chain planning “facts of life” and it’s how your company addresses them that counts. Watch Greg Hartunian’s vlog to hear his thoughts and what you can do about it.
Smart Inventory Planning and Optimization automatically calculates the stocking policy that yields the best return for your business considering holding costs, ordering costs, and stock outs. To see it in action, register below to watch a 12 minute demonstration.
Inventory optimization has become an even higher priority in recent months for many of our customers. Some are finding their products in vastly greater demand; more have the opposite problem. In either case, events like the Covid19 pandemic are forcing a reexamination of standard operating conditions, such as choices of reorder points and order quantities.
Ensure inventory policy matches business strategy. Various team members can create their own scenarios, perhaps dividing the work by product line or sales territory. One decision maker can then merge these scenarios into a consensus plan.
This short note is about one way your business can develop a plan to adjust to one of the likely fallouts from the virus: sudden increases in the time it takes to get inventory replenishment from suppliers. Supply chains around the world are being disrupted. If this happens to you, how can you react in a systematic way?