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sinha.rk.dr@gmail.com
Replenishment systems in Supply Chain must be designed specifically for their unique context.
Many companies are embarking on initiatives to implement replenishment in a leg of their supply chain to start with… be it with distributors, between internal nodes, or with vendors.
Some of the teams are just looking at what the leaders have done, and trying to ‘copy-paste’ it in their company. We shouldn’t be surprised if they encounter problems and fail to get the desired benefits.
Designing a proper replenishment system is a science. There are several variables and parameters which must be optimised for a given context. Some of these are
… fix inventory norms based on past consumption, forecast, or demand sensing
… frequency of norm revision based on consumption or update of demand prediction (daily, weekly, monthly)
… granularity of fixing Replenishment Lead Time
… demand trigger (orders, sales, consumption)
… granularity of capturing prediction errors and buffering them
Each of these would vary from company to company, based on their data maturity and the desired level of responsiveness.
Do reach out if you would like to discuss it and get an independent assessment of your current or the proposed replenishment system.
No strings attached!