OUT-OF-STOCK  -  OVER STOCK WHY DO WE HAVE STOCK ANYWAY? DECOUPLING POINT Logistconsult s.r.o. CZ Pieter Vos STOCKS.

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Presentation transcript:

OUT-OF-STOCK  -  OVER STOCK WHY DO WE HAVE STOCK ANYWAY? DECOUPLING POINT Logistconsult s.r.o. CZ Pieter Vos STOCKS

Stock problems/risks Logistconsult s.r.o. CZ Pieter Vos Storage capacity – costs Supplier reliability Shelf life Fifo Out of fashion Capital costs – money is blocked Service level - % KPI’s

Solving stock problems/risks Logistconsult s.r.o. CZ Pieter Vos Minimum stock …..but maximum service level Customer service “a lost sale you never get back” Communication between partners Internal- external Sharing information and data (supplier responsible for stock in retailer DC/point of sale) Supplier->forwarder/3pl->warehouse->store-> end consumer

Lead time Logistconsult s.r.o. CZ Pieter Vos The service you want to give depends ….. on the service you get, so organise it. Companies try often to move the stock to an other partner, in the end the customer pays the bill -> customer will go to competitor

Ways to reduce stock in the supply chain Just-in-time Cross-dock (3PL) Split between fast and slow movers Combined deliveries Delete one link in the chain System support EDI Understanding and training (you are your own expert) Logistconsult s.r.o. CZ Pieter Vos

Recommendation Logistconsult s.r.o. CZ Pieter Vos E. Goldratt – “the goal” Bottleneck theory Kan-ban