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7 Reasons Your Lead Time is Wrong & its Costing You Millions

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Lead Time is an important factor in any demand-driven forecasting or retail replenishment system. It drives your order points and helps you place orders at just the right time. If your lead time is inaccurate you will quickly find yourself overstocked or understocked. Are you making these common lead time mistakes that cost retailers millions? - See more at: http://www.data-profits.com/blog/7-reasons-your-lead-time-is-wrong-and-its-costing-you-millions/#sthash.1a3VKdGE.dpuf

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7 Reasons Your Lead Time is Wrong & its Costing You Millions

  1. 1. 7 Reasons Your Lead Time is Wrong (And It’s Costing You Millions) Copyright Data Profits 2015
  2. 2. Lead time is an important factor in any demand-driven forecasting or retail replenishment system. Copyright Data Profits 2015
  3. 3. Lead time is an important factor in any demand-driven forecasting or retail replenishment system. It drives your order points and helps you place orders at just the right time. Copyright Data Profits 2015
  4. 4. If your lead time is inaccurate you will quickly find yourself overstocked or understocked. Copyright Data Profits 2015
  5. 5. If your lead time is inaccurate you will quickly find yourself overstocked or understocked. Are you making these common lead time mistakes that cost retailers millions? Copyright Data Profits 2015
  6. 6. #1 Ignoring internal lead times Copyright Data Profits 2015
  7. 7. #1 Ignoring internal lead times The easiest lead time to forget is time from distribution center to store. Copyright Data Profits 2015
  8. 8. #1 Ignoring internal lead times The easiest lead time to forget is time from distribution center to store. Vendor Copyright Data Profits 2015
  9. 9. #1 Ignoring internal lead times The easiest lead time to forget is time from distribution center to store. Vendor DC Copyright Data Profits 2015
  10. 10. #1 Ignoring internal lead times The easiest lead time to forget is time from distribution center to store. Vendor DC Store Copyright Data Profits 2015
  11. 11. #1 Ignoring internal lead times The easiest lead time to forget is time from distribution center to store. Vendor DC Store Copyright Data Profits 2015
  12. 12. #2 Using only vendor-quoted lead time All your vendors supply you with a standard lead time. Do you know if that lead time is correct? Copyright Data Profits 2015
  13. 13. #2 Using only vendor-quoted lead time Vendor Lead Time Quoted Actual Copyright Data Profits 2015
  14. 14. #2 Using only vendor-quoted lead time Vendor Lead Time Quoted Actual Copyright Data Profits 2015
  15. 15. #3 Using the same lead time for every item Copyright Data Profits 2015
  16. 16. #3 Using the same lead time for every item Some items take more time than others for vendors to produce or more time for your distribution center to pick. Copyright Data Profits 2015
  17. 17. #3 Using the same lead time for every item Some items take more time than others for vendors to produce or more time for your distribution center to pick. CAT FOOD DOG FOOD Copyright Data Profits 2015
  18. 18. #3 Using the same lead time for every item Some items take more time than others for vendors to produce or more time for your distribution center to pick. CAT FOOD 3 DAYS DOG FOOD 14 DAYS Copyright Data Profits 2015
  19. 19. #3 Using the same lead time for every item Some items take more time than others for vendors to produce or more time for your distribution center to pick. CAT FOOD 3 DAYS DOG FOOD 14 DAYS LOST PROFITS! Copyright Data Profits 2015
  20. 20. #4 Using the same lead time for every location Copyright Data Profits 2015
  21. 21. #4 Using the same lead time for every location A truck can only travel 500 miles a day. Copyright Data Profits 2015
  22. 22. #4 Using the same lead time for every location A truck can only travel 500 miles a day. Copyright Data Profits 2015
  23. 23. #4 Using the same lead time for every location A truck can only travel 500 miles a day. DC #1 #2 Copyright Data Profits 2015
  24. 24. #4 Using the same lead time for every location A truck can only travel 500 miles a day. DC #1 #2 Copyright Data Profits 2015
  25. 25. #4 Using the same lead time for every location A truck can only travel 500 miles a day. DC #1 #2 LOST PROFITS! Copyright Data Profits 2015
  26. 26. #5 Hidden Lead Times Copyright Data Profits 2015
  27. 27. #5 Hidden Lead Times Are you factoring in every stop, every touch, every delay? Copyright Data Profits 2015
  28. 28. #5 Hidden Lead Times Are you factoring in every stop, every touch, every delay? Copyright Data Profits 2015
  29. 29. #5 Hidden Lead Times Are you factoring in every stop, every touch, every delay? Copyright Data Profits 2015
  30. 30. #5 Hidden Lead Times Are you factoring in every stop, every touch, every delay? Copyright Data Profits 2015
  31. 31. #5 Hidden Lead Times Are you factoring in every stop, every touch, every delay? LOST PROFITS! Copyright Data Profits 2015
  32. 32. #6 Poor visibility to actual lead times Copyright Data Profits 2015
  33. 33. #6 Poor visibility to actual lead times There is no easy way for you to tell if your lead times are right. Copyright Data Profits 2015
  34. 34. #6 Poor visibility to actual lead times There is no easy way for you to tell if your lead times are right. Copyright Data Profits 2015
  35. 35. #6 Poor visibility to actual lead times There is no easy way for you to tell if your lead times are right. Copyright Data Profits 2015
  36. 36. #6 Poor visibility to actual lead times There is no easy way for you to tell if your lead times are right. LOST PROFITS! Copyright Data Profits 2015
  37. 37. #7 Manual lead time input Copyright Data Profits 2015
  38. 38. #7 Manual lead time input Even if you can get to the correct information, it’s not easy to update. Copyright Data Profits 2015
  39. 39. #7 Manual lead time input Even if you can get to the correct information, it’s not easy to update. Step Step Step Copyright Data Profits 2015
  40. 40. #7 Manual lead time input Even if you can get to the correct information, it’s not easy to update. Step Step Step Step Step Step Copyright Data Profits 2015
  41. 41. #7 Manual lead time input Even if you can get to the correct information, it’s not easy to update. Step Step Step Step Step Step Step Step Step Copyright Data Profits 2015
  42. 42. #7 Manual lead time input Even if you can get to the correct information, it’s not easy to update. Step Step Step Step Step Step Step Step Step Step Step Step Copyright Data Profits 2015
  43. 43. #7 Manual lead time input Even if you can get to the correct information, it’s not easy to update. Step Step Step Step Step Step Step Step Step Step Step StepLOST PROFITS! Copyright Data Profits 2015
  44. 44. Even small improvements in the accuracy of your lead times can pay off big in GMROI and top-line sales. Copyright Data Profits 2015
  45. 45. The best way to fix all these problems is to track and forecast lead times as an integrated part of your demand forecasting or replenishment system. Copyright Data Profits 2015
  46. 46. iKIS™from Data Profits allows you to easily manage all lead times down to the SKU location while providing comprehensive reporting and customizable automated alerts visible to all stakeholders. Copyright Data Profits 2015
  47. 47. All Material Confidential - Copyright Data Profits 2013 Let us help you “ Tighten the Links in your Chain™ ” and reclaim your lost profits! Follow us on Twitter or LinkedIn and receive the latest info about tutorials, articles, and more. Copyright Data Profits 2015

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