Planning Safety Stock Levels: By Quantity or Time?

I’ve written at some length about the importance of safety stock in the overall health of your supply chain, how to stratify customer service levels for greater profits, and about how to approach the task of calculating your ideal safety stock levels.

There’s another important consideration involved in setting your safety stock levels, though. You have to decide whether it’s best to look…

Stratifying Customer Service Levels for Greater Profits - ABC Analysis

In my last post, I talked about the importance of safety stock, as well as its associated costs. In this post, we’ll look into how you’re setting your customer service level targets.

When you set customer service level targets, are you treating all of your items the same? Are you treating all of your customers the same? If so, does that really make sense?

One reliable approach…

The Value of Collaborative Forecasting

Some vendors of forecasting software go out of their way to envelop forecasting in a geeky, esoteric, statistical fog. 

When you set out to forecast sales, are you really trying to decompose time series into level, trend and seasonality? Is your aim to detect null and alternative hypotheses in tests of autocorrelation? No. The true goal of any sales forecasting exercise is to forecast human…

From S&OP to Integrated Business Planning

If we want to drive change in the supply chain planning realm, we’ll often need to shake things up and push our colleagues beyond their comfort zones. Before we embark on a shake-up, though, it’s best to know exactly what integrated business planning (IBP) is and how it differs from sales and operations planning (S&OP).

Once you’ve decided IBP can help your company maintain profitable growth,…

What Is Integrated Business Planning?

In my previous blog post, I shared a story about shaking things up in supply chain management. Truth be told, I think we’re overdue for a good shakeup in this industry. Since the mid-1990s, we’ve been striving to implement sales and operations planning (S&OP) and achieve its benefits.

Let’s give credit where credit is due: S&OP has been quite useful for those companies that have managed…