Understanding Safety Stock Calculation Strategic inventory positioning is critical in supply chain management, and one of the most important aspects of this is determining safety stock. Statistical formulas are commonly used to size safety stocks, helping businesses account for demand variability and lead-time variability. A well-known formula used in inventory management incorporates these variability assumptions, … Read more
At the end of 2023, while attending a supply chain planning conference organized by a leading analyst firm, I was particularly impressed by one of the presentations. An Austrian company presented its project to overhaul its supply chain planning processes, with the support of a major consulting firm for the implementation of a digital supply … Read more
The Pareto law in inventory management is essential because it allows us to focus on the essentials. To apply it, we may be tempted to carry out an ABC classification for inventory. This classification is encouraged by the literature and Supply Chain courses. In many cases, this classification is generated at regular intervals by a … Read more
Salespeople’s core business is to sell – to develop the company’s (profitable) sales. It’s not the job of salespeople to draw up sales forecasts, to ask for this or that level of stock, to worry about the availability of this or that component, to deal with out-of-stock situations, or to catch up with their customers. … Read more
Good resolutions, you know, those things you decided to do at the beginning of last year that… what was it again? Ah yes, but no, this year it’s different because the few good business resolutions that follow to steer your flows are now easy to put into practice! I’ll Protect and Accelerate the Flow If … Read more
