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Give the slow movers in your Supply Chain a chance to accelerate!
Every company has a few products which are slow movers, and we often wonder why these aren’t picking up in the market. While the intrinsic product appeal is one of the factors, the treatment of such products by the supply chain team has a significant role to play in the future of such products – whether they accelerate to become fast movers or languish at the current level till they are discontinued.
One of the key reasons is the differential service level expectation for these products. While the fast movers are managed at 95% or 99% service levels, expectation for the slow movers is often as low as 75-80%, which seriously affects their on-shelf availability and starts the vicious cycle. Poor availability means loss of potential new triers and disappointment for the potential repeat purchasers. The vicious cycle continues, and these products find it difficult to build a sustained consumer franchise.
How do we break this vicious cycle? We must change the policy of differential service levels and set high service level of 95-99% for the slow movers as well.
You will be surprised to see how many of them turn into fast movers!