Leader, Are You Missing the Inventory Management Mark?

Do you use literal deals data by SKU to drive unborn force copping opinions?

Still, you may be tying up precious company bones in slow-selling force that no longer meets the mark, If you’re grounding hereafter’s force demands on history’s figures.

Utmost ERPs solely use literal data in their demand planning modules. While history’s data can be a useful point of reference for unborn purchasing opinions, literal information alone should n’t be seen as an index of unborn demand. Like all aspects of your growth, product planning & purchasing must be forward- concentrated opinions, embedded in strategy and process enhancement.Read about Jcpenney credit card!

As you look to the future of your product lines

You must integrate once substantiation with unborn trends as you determine the stylish way forward for your brand.

Looking to the future does n’t mean leaving the history before. Rather, it means assaying literal information and relating applicable criteria to determine unborn direction.

In other words what does the history say about how your company should respond in the future?

Perhaps your data shows that your business has been deficiently. Grazed with some of your most in- demand products, while low-selling particulars have crowded your storehouse shelves for months. This may indicate a need to more understand your cash conversion cycle, and the factors impacting it.

Still, that may be another point of consideration. If you ’ve been heavily impacted by force chain issues. What are you doing to prepare for the future — while guarding yourself from stock outs and lost deals?

Having a full picture of what gaps are there in force chain operation, and what changes (whether in terms of order timing or else) will help palliate the gap between force and demand in the future.

While making process advancements grounded

On your data can mainly impact your brand for the better, you must look externally to determine coming way, not just internally.

This starts with having your cutlet on the palpitation of your request, keeping current and unborn trends at the van of your mind as a leader.

Not only must you be apprehensive of your internal conversion cycle and product shelf life – you must also plan this against the external lifecycle of a trend in your assiduity, and crucial pointers that it’s time for a strategic move with your force.

Timing is crucial … as is staying true to your brand’s roadmap.

As a leader, you must always balance the lure of assiduity trends with the stability of your brand image and request isolation. Stay apprehensive of the geography. But do n’t be detracted by it – else you’ll surely swerve out course.

One of our guests at Blueprint CFO, a consumer products business, was having issues relating bestselling SKUs and establishing force visibility. In fact, because of poor force copping planning, they were out of their bestselling product for ten months, significantly impacting company deals!
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Design CFO’s Data Analytics platoon responded by erecting out an force operation tool grounded on destined deals pretensions. The model strived to look beyond literal deals alone, vaticinating unborn units vended by looking at current force ( including units available on- hand, units in- conveyance and units that listed for product), as well as prognosticated trends in the assiduity, and in terms of product seasonality.Read about Ross Hours store.

Also, the tool helped elevate our customer’s business by covering stock-outs and making recommendations grounded on top and nethermost merchandisers.

We call our report the Green Light/ Red Light report. Taking storehouse stock into consideration, the Green Light report showed where the customer was in their product plan and what SKUs they did n’t have enough of – performing in$2.9 million in lost deals if not addressed. The plan indicated where to take action and fill in the gaps.

The Red Light report

On the other hand, showed the customer their “ slow carriers”. In other words, the SKUs where force exceeded demand. This customer had$1.4 million worth of slow- moving products. Which we advised them to liquidate, as to reduce storehouse and insurance costs, invest in their in- demand particulars, and save periodic gains.

All by each, looking at force challenges from a future- concentrated. Strategic perspective, our customer has been suitable to efficiently communicate with colorful stakeholders. Coordinate the process, exceed deals pretensions and maximize gains overall.

Do you have acceptable visibility into the gaps and overlaps in your current force purchase planning? If not, our platoon of data- driven experts can help you transfigure your product planning experience for the better.