Retail and Distribution
The distribution supply chain historically has been one where goods are produced and immediately pushed into the distribution network as close to the customer as possible. This has lead to large inventories but none the less not always the right things in the right place at the right time. This arises from misallocation in the divergent supply network and also forecasting error due to the large work-in- process and hence gives long lead times.
The solution, Replenishment Pull, exploits the statistical variability to the advantage of the organisation and greatly reduces the reliance on forecasts which are almost always error prone.
Particularly suitable for auto after market, distribution chains and retail organisations the solution leads to results which more than doubles the inventory turns. The release in cash due to the solution implementation gives a positive loop feedback and makes available more suitable inventory thus further improving upon the sales.