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How assorted are your Supply Chain distribution consignments?
Companies working on monthly forecasts and serving their depots directly from factories often send large quantities of the same product in a truckload. This has two implications. Firstly, the depot gets overstocked for this product and secondly, the time gap between two consecutive supplies of the product goes up. As a result, both availability as well as freshness suffer.
On the other hand, companies using Flow principles send multiple consignments of the same product, separated by short time intervals. Every truckload carries a large assortment of the portfolio. This results in better availability and lower inventory, especially when demand is volatile and difficult to predict.
Looking at the assortment of products in freight consignments gives a fair idea of the extent to which the Flow principles are internalised.