10 inventory forecasting issues

Forecasting process – what is the current forecasting process and who is involved in setting targets? Information technology – identify the current IT system(s) employed by the company and are regular upgrades and improvements taking place? Collaboration – does collaboration take place between the various internal and external partners? Items overstocked and out of stock [...]

Selection of mode of transport

Speed of mode – water transport takes much longer than air transport Volume to ship – heavy, low value goods are more suitable for rail and water transport Flexibility of mode – road transport is considered more flexible Visibility of mode – can we track the goods shipped? Weight of freight – a heavy load [...]

10 ways to reduce inventory cost

Determine cycle stock.  Understand average inventory and reduce safety stock. Reduce overall lead time and lead time variability. Understand total cost. Evaluate holding cost and have a clear understanding of real potential savings with bulk purchases. Improved warehouse layout. Optimize warehouse layout and evaluate the potential of using narrow aisle handling equipment. Rationalize SKUs. Eliminate [...]

10 key challenges for supply chain customer excellence

Processes and systems – lack of understanding of processes and systems and the impact on the supply chain Detail – poor attention to detail Cost – lack of understanding of service cost and breakdown Revenue – fixated on the revenue implication of each customer improvement Collaboration – poor partner collaboration in the feedback process Visibility [...]

10 key barriers with partner collaboration

Culture differences. Different organizations have different values and ways of doing things. Poor alignment. Organizational goals and incentive conflicts. Contracts and legal. Poor drawn up contracts or lack of contracts. Accountability issues. Overlapping processes and unclear accountability issues. Competing partners. Conflict of interests with competing organizations. Lack of leadership. Lack of leadership to drive the [...]

10 key value providers to customers

Products. Do we provide the right products and SKUs to our customers? Value. Are products seen as value for money to respective customers in identified channels? Availability. Are specified SKUs available in specified channels? Communication. Do we communicate OOS (out of stock) to our customers and is a dedicated customer helpline available? Information. Do we [...]

7 key issues to ensure accurate sales data

Eliminate duplicate databases- ensure the sales organization and partners are all using the same database Sharing information- sharing information with departments and partners will also improve data relevance and eliminate duplications Automation- automated processes will reduce data entry time and errors Data entry simplification- simplify sales processes for salesman. This will allow more time for [...]

10 key steps for developing a distributor evaluation system

Map out requirements- develop evaluation criteria and get agreement from key stakeholders Process and roles- identify each stakeholders’ role in each operational process Benchmarking-determine key KPIs that will form part of the evaluation Create rating systems- develop the system and communicate and train employees and distributor partners. Ensure all parties have a clear understanding of [...]

10 key attributes of an effective supply chain

Consumer focus- consumer needs should always be the focus point of any supply chain system. Speed – determine the speed of each process and procedure in the supply chain and assess how to improve on it. Benchmarking can play an important role here. Flexibility- a rigid supply chain system can not respond to market changes. [...]

10 distributor problems and how to avoid them

Not covering all the outlets- track and monitor outlet distribution on a regular basis. Ensure the customer list and maps are up to date. Service levels drop- work with distributors and get an understanding why service levels are going down. Lack of experience- the distributor does not have the required category experience to do the [...]

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