
Management Consulting
Industry:
Direct Selling
Objective:
Develop and implement a demand plan that extends to an 18 month period as well as procedural all related activities
Overview:
The client had been experiencing stock-outs of key products while having excess stock of slow-moving items. Engagement with suppliers and optimizing batch sizes to meet specific demand enabled the stabilization of the demand planning, inventory control and cost reduction of specific products. A demand planning tool was created which factored into account lead times and anticipated demand, which triggered order placement.
Outcomes:
- 18-month rolling sales forecast for standard and promotional items in relation to inventory on hand, sales and receipts
- Optimized ordering (Economic Order Quantity) resulting in R1m saving and increased service levels
- Safety stock and stocking policy defined for each category of product
- Optimization of Working Capital in terms of expediting/de-expediting purchase orders
- Implementing distribution from a central warehouse to regional locations
- Facilitation of monthly Supplier meeting