With the exception of companies whose stated business is retail, most companies tend to ignore distribution. This is a huge mistake. Since every company is a link in a supply chain, most already realize that as long as the end consumer has not bought, nobody has sold. The biggest clot in the supply chain – the majority of the inventories – are usually found in the distribution stage. If a company wants to prosper its managers must understand how to help the distribution link to drastically improve its performance.
Your organization will learn how to carry out practical changes and what are the points you should take into account to have a successful implementation.
Pull SystemΒ – trigger supply based on actual consumption.
ReplenishmentΒ – supply the minimum necessary amount to protect availability during the replenishment lead time.
AggregationΒ – placing inventory in the right place to significantly reduce the amount of inventory required to protect against consumption variability.
Includes a Q&A segment.
β¦ What is distribution? and who is impacted by Distribution?
β¦ Step 1: Identify the system’s constraint
β¦ Step 2: Decide how to exploit the system’s constraint – Have the right inventory at the right place at the right time
β¦ Step 3: Subordinate everything else to the above decision
β¦ The distribution cloud
β¦ Examine the Assumptions
β¦ What to change to? Improve forecast, improvement replenishment time and improve reliability
β¦ Is accuracy of the forecast the same for every stage of the distribution system?
β¦ Replenishment time
β¦ From “push” to “pull”
β¦ GM Cadillac Real case
β¦ Operational measurements of the Supply Chain – what is the purpose of measurements?
β¦ Primary measurement: Throughput Dollar Day (TDD)
β¦ Secondary measurement: Inventory Dollar Days (IDD)
β¦ What is the impact?
β¦ Measurements for the components of a supply chain: Throughout
β¦ Supply chain composed of companies
β¦ Internal Supply Chain
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