Arkieva Supply Chain Link Blog.
Creating the link between better supply chain planning and decisions.
RECENT POSTS
Going Digital? Things to Consider When Creating a Digital Supply Chain Strategy
A digital supply chain is a supply chain network (DSN) that focuses on using digital systems or technology tools to reduce the need for disparate systems through connectivity; eliminating manual processes and leveraging the data that is available through these systems to enhance the entire supply chain network.
Should I Use Order Lead Time for Demand Segmentation?
To set the foundation for this discussion, let us first look at the definition of order lead time. Order lead time is the time gap between the date when a customer places an order and when they expect to receive the product. Typically, in a B2B environment, the expectation is that there will be some gap between the two dates, and in many cases, this gap can be negotiated.
Can Demand Segmentation Improve Your Statistical Forecast?
Imagine a demand planner working with 10,000 unique combinations. One of the not so envious tasks for this person would be to generate statistical forecast for all these combinations. These days, the statistical forecasting tools available on the market can forecast these combinations using a list of forecasting methods and figure out which method works best for a particular combination.
Study Reveals 50% Adoption Rate for Supply Chain Planning Solutions
In a recent study, Gartner estimates that 50% of Supply Chain Planning Solutions are not fully utilized1. How can organizations ensure that they have the user adoption needed to attain the full benefits from their existing or new supply chain solution?
How to Track Your Inventory Stock Out Levels Using These Severity Codes & Alerts
In an ideal world, your products would have on-shelf availability whenever your customer needs them. However, this is often not the case for many businesses. It’s also essential to note that, not all stock outs or out-of-stock(OOS) carry the same severity levels or require the same form of actions. In this blog post, we’ll discuss a simple coding system using descriptive analytics that can help you easily identify different severity levels for your stock out.
How to Measure Inventory Effectiveness
I discussed some of the possible pitfalls when using inventory turnover as a measurement for effective inventory management. In this post, I’ll describe a simple technique for measuring inventory effectiveness.
How Does My Open Order History Impact My Sales Prediction?
An open order is defined as an order placed by the customer which is under process and is yet to be fulfilled by the supplier. For effective analysis, open order data needs to be recorded daily in an ERP system. A minimum of twelve to eighteen months of open order history is required for your sales forecasting analysis and fine-tuning process. A shorter period could render unreliable and skew the results of your data analysis.
How to Adjust Your Planning to Meet Changing Sales Patterns
In an ideal world, demand and supply would be steady and predictable, resulting in optimal capacity utilization and no back orders or missed customer orders. However, in the actual supply chain world variations in actual sales vs. projected sales result in lower forecast accuracy, and either overstocking or stock out situations.
Look beyond the Turnover Ratio! Here’s a Simple Way to Create an Effective Inventory Management Process
Use this simple tool for identifying areas of potential improvement in the business to create an effective inventory management process. This type of measurement allows for a more widespread understanding of the nature of inventory and fosters action to prevent a build-up of non-value-adding "drag".
