|
|
| Supply Chain Design >
Stock Service Targeting |
| If your stock policy is X weeks of everything, you have a major opportunity waiting to be realised.
Contact Sequoia to both decrease your stock AND increase your service levels.
|
| A lethal combination of useless overstocking of some SKUs and damaging service losses on others.
This interactive demo shows the effect of applying a blanket stock policy to three SKUs, each with the same average sales but different sales patterns, as well as the effect of tailoring stock levels to specific SKUs.
You can alter the blanket stock target in the demo and see the effect of increasing or decreasing the blanket stock target:
|
The demo shows that it doesn't matter where you set your blanket target, it will always lead to an excess of stock, and/or poor service performance.
As you can see, SKU level design provides a win-win by cutting out the unnecessary stock which serves no purpose, and replacing it with carefully targeted stock that yield major improvements in service levels.
This is because there is a statistical relationship between stock and service that is unique to each SKU as it is dependant on:
Planning and transit leadtimes
Time between replenishments which is dependant on your scheduling approach
Variability in demand or forecast error
|
|
| |