When a Distribution Center Makes Sense

Last week we received an inquiry asking when it makes sense to set up a regional distribution center rather than having suppliers deliver all products directly to the branch or warehouse that will sell them. Distributing products from a central company location...

Collaborative Forecasting – Part II

Last month we introduced the “Record, Report and Evaluate” procedure for obtaining for predictions of how sales or material consumption will change in the future. This month we will continue to explore how we can obtain the most accurate estimates of future demand...

Contingency Planning Part II

The most important element of effective inventory management is to meet or exceed your customers’ expectations of product availability. To achieve this goal, you must depend on your vendors’ ability to reliably replenish your inventory. But your vendors aren’t always...

Contingency Planning

Your organization utilizes people, equipment, inventory and other assets to serve customers.  Almost every day these three elements work in harmony to generate profits.  They may work so well that your management is lulled into a false sense of security.  But what if...

Dealing with Unpredictable Seasons

Many computer systems utilize past usage history when forecasting future demand of products.  Seasonal forecast formulas in these systems typically look at what was sold or used in this month (and possibly subsequent months) last year.  For example, if you are...

Common Sense is Not Statistically Valid

Our clients utilize a wide variety of enterprise resource planning (ERP) computer software packages.  Most have the potential to maximize the productivity and profitability of an organization’s investment in stock inventory.  But occasionally we run into a road...