SynchronizingStore - Warehouse demand<br />Nicolas Sprotti – July 1st 2011<br />
Nicolas Sprotti - July 1st 2011<br />Synchronizing Store - Warehouse demand<br />Five principles of Forecast…<br />Forecas...
What options for a multi-echelon forecasting and replenishment ?<br />Synchronizing Store - Warehouse demand<br />Nicolas ...
Synchronizing Store - Warehouse demand<br />Single Point Replenishment - SPR<br />Roll up historical shipment<br />Profile...
Single Point Replenishment - SPR<br />Advantages<br />Disadvantages<br />Historical Method<br />Automatically account for ...
What options for a multi-echelon forecasting and replenishment ?<br />Synchronizing Store - Warehouse demand<br />Nicolas ...
Synchronizing Store - Warehouse demand<br />Distribution Requirements Planning - DRP<br />Forecasted Orders<br />Roll up s...
Distribution Requirements Planning - DRP<br />Advantages<br />Disadvantages<br />Changes to store level demand forecast, p...
What options for a multi-echelon forecasting and replenishment ?<br />Synchronizing Store - Warehouse demand<br />80%<br /...
What options for a multi-echelon forecasting and replenishment ?<br />Synchronizing Store - Warehouse demand<br />Nicolas ...
Synchronizing Store - Warehouse demand<br />Multiple Point Replenishment - MPR<br />Store POS sales<br />Roll upProfile<br...
Multiple Point Replenishment - MPR<br />Advantages<br />Disadvantages<br />Reactivity with minimal forecast error.<br />Pr...
Synchronizing Store - Warehouse demand<br />Product Appropriateness Matrix<br />FOOD<br />NON FOOD<br />Grocery / Frozen<b...
Synchronizing Store - Warehouse demand<br />Q<br />A<br />&<br />Nicolas Sprotti - July 1st 2011<br />
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Synchronyze Store Warehouse Demand in a multi echelon environment (Nicolas Sprotti)

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Synchronyze Store Warehouse Demand in a multi echelon environment (Nicolas Sprotti)

  1. 1. SynchronizingStore - Warehouse demand<br />Nicolas Sprotti – July 1st 2011<br />
  2. 2. Nicolas Sprotti - July 1st 2011<br />Synchronizing Store - Warehouse demand<br />Five principles of Forecast…<br />Forecast are always wrong<br />Forecast must be measured and improved<br />Forecast are more accurate for group of product, rather than individuals components<br />Forecast are more accurate closer in<br />Low-volume or erratic forecast are most difficult<br />
  3. 3. What options for a multi-echelon forecasting and replenishment ?<br />Synchronizing Store - Warehouse demand<br />Nicolas Sprotti - July 1st 2011<br />
  4. 4. Synchronizing Store - Warehouse demand<br />Single Point Replenishment - SPR<br />Roll up historical shipment<br />ProfileForecast<br />DC Demand<br />Nicolas Sprotti - July 1st 2011<br />
  5. 5. Single Point Replenishment - SPR<br />Advantages<br />Disadvantages<br />Historical Method<br />Automatically account for warehouse to store lead time<br />Simplicity : Business understand this information and metrics have been used to support decision making for some time<br />Not optimized for a multi-echelon environment<br />Increased demand may be delayed, perpetuating inferior fill rate and lost sales<br />Synchronizing Store - Warehouse demand<br />Nicolas Sprotti - July 1st 2011<br />
  6. 6. What options for a multi-echelon forecasting and replenishment ?<br />Synchronizing Store - Warehouse demand<br />Nicolas Sprotti - July 1st 2011<br />
  7. 7. Synchronizing Store - Warehouse demand<br />Distribution Requirements Planning - DRP<br />Forecasted Orders<br />Roll up store order forecast<br />DC Demand<br />Forecasted Orders<br />Forecasted Orders<br />Nicolas Sprotti - July 1st 2011<br />
  8. 8. Distribution Requirements Planning - DRP<br />Advantages<br />Disadvantages<br />Changes to store level demand forecast, promotional events, order cycle and lead-times are all captured in the order forecast<br />When Store inventory become out of balance, updated store orders forecasts reflect the impact on the warehouse by reducing or increasing the quantities needed.<br />Maintain accurate PI at the store level<br />Forecast maintenance<br />Inaccuracy of the store order forecast, increasing level of noise at the warehouse<br />“ For most retailers, over 80% of SKU/Stores do not sell a single piece per week ”<br />Synchronizing Store - Warehouse demand<br />Nicolas Sprotti - July 1st 2011<br />
  9. 9. What options for a multi-echelon forecasting and replenishment ?<br />Synchronizing Store - Warehouse demand<br />80%<br />20%<br />Compare and Chose the best one!<br />Nicolas Sprotti - July 1st 2011<br />
  10. 10. What options for a multi-echelon forecasting and replenishment ?<br />Synchronizing Store - Warehouse demand<br />Nicolas Sprotti - July 1st 2011<br />
  11. 11. Synchronizing Store - Warehouse demand<br />Multiple Point Replenishment - MPR<br />Store POS sales<br />Roll upProfile<br />Forecast<br />Store POS sales<br />Store POS sales<br />Offset by AvgDC / Store lead time<br />Nicolas Sprotti - July 1st 2011<br />
  12. 12. Multiple Point Replenishment - MPR<br />Advantages<br />Disadvantages<br />Reactivity with minimal forecast error.<br />Promotions and store events can be accurately translated to DC/Warehouse Demand Forecasts<br />Not need to maintain a PI<br />This method does not respond to the impact of changing effective inventory at the individual stores.<br />Forecast maintenance<br />The technological complexity caused by the need to integrate<br />Synchronizing Store - Warehouse demand<br />Nicolas Sprotti - July 1st 2011<br />
  13. 13. Synchronizing Store - Warehouse demand<br />Product Appropriateness Matrix<br />FOOD<br />NON FOOD<br />Grocery / Frozen<br />HBC<br />Electric<br />FashionPull<br />Fresh<br />C<br />A, B<br />Optimum<br />Adapted<br />Not Adapted<br />Nicolas Sprotti - July 1st 2011<br />
  14. 14. Synchronizing Store - Warehouse demand<br />Q<br />A<br />&<br />Nicolas Sprotti - July 1st 2011<br />

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