Distribution Operations: Have the Right Stock at the Right Time

1. Distribution Operations:
Have the Right Stock at the
Right Time
www.optimizeyoursupplychain.com

2. Agenda
• Address Common Short Falls of
Traditional Inventory Forecasting
• Inventory Carrying Costs
• Advantages of Leveraging a True
Inventory Forecast Management
Solution

3. Right Stock, Right Time: Issue 1
Single Point of
Failure
Who?
• Been with organization for years
• Tremendous amount of “Head Knowledge”
• Only person who understands the process and
planning spreadsheet.

4. Right Stock, Right Time: Issue 2
The Spread
Sheet
Why?
• Untold manual inputs
• Manual data and formula manipulation
• Lack of business logic

5. Right Stock, Right Time: Issue 3
Time
Why?
• Performing multiple jobs
• Manual efforts force simple planning
• Organizational input bypassed

6. Why is this so Important
In order to remain competitive and
profitable, not having the right stock in
the right place at the right time WILL cost
you in both hard inventory carrying costs
as well as Customer and Sales Losses.

7. Inventory Carrying Costs
Some contributing factors:
• Cost of Money
• Obsolescence
• Variable Storage Costs
Industry metrics have carrying costs between
15-25% of total inventory value on annual
basis.
$1M inventory at very least translates to
$150,000 in additional annual expense

8. True Forecast Management – Why?
Fact: You can build a boat that floats out of
Duck Tape.
Should MasterCraft build their ski boats out of
Duck Tape?
OBVIOUSLY NOT!
Your business should run like a MasterCraft
…not eventually sink using Duck Tape.

9. True FM - #1: Business Logic

10. True FM - #2: System Integration
To ensure data accuracy and dramatically cut
down on the amount of forecasting labor
hours, a true Inventory Forecast
Management System must integrate with
your operations and accounting systems for
data points such as:
– Open Orders
– Purchase Orders
– Historical Sales
– Inventory by Site
– Etc.

11. True FM - #3: Dimensional Analysis

12. True FM - #4: What If Analysis

13. True Forecast Management:
– Are you trusting your forecast to manual
process and a Spreadsheet?
– Do you have a mandate to reduce your
inventory costs while at the same time
maintaining or increasing your Customer
Service levels?
– Do you need to squeeze more profitability
out of your business to meet owner and
shareholder expectations?

14. Distribution Solution Set

15. We Can Help!
For a conversation on optimizing
your operations please contact us
at:
Phil Sobol
Director of Vertical Solutions - Distribution
psobol@epartnersolutions.com
615.550.6903
1-888-883-9797 toll free
info@optimizeyoursupplychain.com