OnTarget : setting SKU-specific stock targets to reduce stock and increase service
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| On average, we are able to reduce our clients' stock by 20% AND increase their service levels by 5%.
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Intuitively, reducing stock levels leads to a reduction in service, so how can we reduce stock AND increase service levels? Quite simply, by keeping more stock of the SKUs that need it, and keeping less stock of the SKUs that don't.
Sequoia have a 15 year track record of setting finished goods safety stock for the largest companies in the consumer goods industry - in that time we have automated and computerized large portions of the effort involved.
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With OnTarget we now have a truly scaleable solution, so the service we offer is affordable to both large and small companies and within a shorter lead-time than ever before.
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Putting money where our mouth is
We believe in the work we do and our ability to deliver tangible business benefit to your company - this isn't just sales talk and we're prepared to work on a performance related basis to prove it.
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Blanket safety stock targets are bad news
Often we find companies operating a blanket safety stock policy of X weeks safety stock for all of their SKUs. This generally leads to excess stock and below-par service levels. Why? Because different SKUs have different sales patterns, so applying a "one size fits all" stock policy to them won't give the best result.
View our interactive demo to understand why.
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The Stock Vs Service trade-off : a delicate balancing act
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| Setting the right safety stock level involves trading off the cost of holding stock with the cost of losing sales and is a delicate balance - in some instances, being 1 week out in the level of safety stock held can double the cost of servicing a SKU. We have the tools and the expertise to pinpoint the optimal this set the right safety stock level for every SKU.
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