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Logic of finished goods deployment is a highly under-leveraged opportunity in Supply Chain.
An important part of supply chain planning is deployment of finished goods.
Should we keep it closer to the invoicing locations for faster service? Should we keep it upstream for better flexibility?
If the inventory is surplus, where should we keep it? If it is short, how do we ration it across the competing locations?
Should we deploy based on monthly sales forecast? Should we deploy it more dynamically, based on actual demand?
Answers to all these questions have an underlying logic. It is perhaps a part of the unwritten rules. The logic controls the extent of stockouts and surplus inventory in the entire system.
When was the last time you revisited the underlying logic?
A small tweak may uncover a huge upside to the business. No additional cost. Huge upside on the revenue as well as profits…