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sinha.rk.dr@gmail.com
Is your team stressed at the year end today?
Today is the last day of the fiscal year and the supply chain teams of most companies are working at full speed to ensure that stocks are made available for the last-minute sales push. Does it really help?
Additional sales pushed today to various customers are nothing but an advancement of next year’s sales, which means that the first few days of the next year would see hardly any sales.
Damage to the business is actually much more. Our haphazard push effort leads to a sub-optimal assortment at our customers where some products are likely to last in their stock for a very long time, possibly leading to obsolescence or a discount sale.
On the brighter side, there are companies who do believe in maintaining proper flow of products at all times and do not resort to push at period ends. These companies end up growing faster and are more profitable.
Would you like to move your operations from push to pull?