A company’s total inventory is built up of many different parts such as strategic stock, anticipation stock, safety stock, cycle stock, unplanned stock. The cycle stock is the one most connected to the demand forecast; it is expected to be sold as the forecast becomes real demand. Safety stock on the other hand is extra stock to deal with the variability of the demand or supply. As such, it is not always linked to forecasting accuracy.
In a previous blog post, we discussed how a high or low value of Coefficient of Variation (CV) impacts the first or second term of safety stock. Today we decided to put this to the test using real customer data - here we will discuss our findings.
Do others challenge your safety stock selections? Are you in need of a safety stock process or policy? Want to take the drama out of your safety stocks? Use this collaborative six-step process to demystify your safety stock process and a create buy-in.
How will Big Data change the way we work and approach the world?
Is it possible to use a company's public financial data to strategically benchmark inventory? Bram answers this in the two part conclusion to his 'Inventory Benchmarking’ blog series.
Is it possible to use a company's public financial data to strategically benchmark inventory? Bram answers this in the two part conclusion to his 'Inventory Benchmarking’ blog series.
In this post we talk about how to align the Supply Chain Triangle with your business strategy and the three types of leader strategies observed by Treacy and Wiersema: Product Leaders, Opex Leaders, and Customer Intimacy Leaders.
In many companies we see a lack of alignment between the three corners of the Supply Chain Triangle, so let's take the triangle into three dimensions and explain the concept of the “best practice frontier”.
What will the Supply Chain be like in the year 2020? In the evolution of supply chain, people, process and technologies must be aligned correctly to achieve maximum results, and leaders must connect the dots to ensure supply chain becomes more market driven.
The benefits of a multi-echelon approach to inventory are always convincing. So then why is multi-echelon inventory adaption so slow to catch-on? Dr. Bram Desmet explores single-echelon vs. multi-echelon inventory approaches, and some of the reasons behind the slow rate of multi-echelon inventory adoption.