Three Stages of Inventory Optimization - or "how to do it right the first time"
Jim Adkins
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Jim Adkins
Manufacturing & Procurement Talent & Operations Strategist, Communicator, Consultant, Executive Leadership Coach, Certified 6 Sigma & LEAN Black Belt, USAF veteran, author, Predictive Index, Proactive Transformation+FUN!
Over the years, I have noticed that company leaders want instant results from inventory optimization. I might offer up that it should be our responsibility as Supply Chain Leaders to help our companies to understand how we can achieve the lofty goals set for us, and chart a path to capture the desired result. Business Alignment - establishing one message, Execution Excellence - Aligning the operating model to the message, and Inventory Strategy - developing an optimization capability. Click Link: Supply Chain Brain Article.
Supply Chain Transformation
9 年If anyone wants to know the alternative to "forecast push MRP/DRP/ERP/APS" the following will help you achieve your planned service levels from up to 50% less average inventory (and needing less capacity) without having to spend $H x TH with consultants and technology on the fruitless search for the chimera that is "optimisation" https://www.dhirubhai.net/pulse/why-pull-manufacturers-should-prioritise-its-fc-push-mrp-simon-eagle?trk=pulse_spock-articles
Supply Chain Transformation
9 年Am surpassed you gave it a 'like' Michael. There's precious little in this article that tells practitioners how to do anything right, let alone 'optimise inventory'. And in reality, inventory cannot be optimised, it can only be reduced either by 1) replacing it as a buffer with time/capacity, or, much better, 2) reducing supply chain variability that can reduce all 3 of the buffers. The first step on the route to reducing supply chain variability (and those buffers) because it is the biggest creator of SC variability, is to cease using "forecast push MRP/DRP?APS" for replenishment execution. Because all the forecasts are wrong (and most are below 60% accurate if you achieve world class 80% mix accuracy, so forget demand sensing / forecast accuracy improvement tools - the gains can only be marginal in today's world of volatile demand, sku proliferation, promotions etc etc) 'fc push' results in excessive unbalanced, service threatening inventories, excessive lead-times and use of unplanned capacity as Planners desperately seek to expedite and change their schedules in response to the inevitable avalanche of exception messages.