You just filled the stores and know they won’t order for weeks, but here comes millions in inventory that will sit until the orders start to trickle in again.
Companies with tens of thousands of products in hundreds or thousands of locations have special challenges. The complexities of the retail supply chain makes it very difficult to align inventory levels with product availability and demand fulfillment needs—most lack the ability to line up DC inventories with their stores orders—causing out of stocks in the stores at the same time chain inventory is bloated. The Blue Ridge CLARITY Multi-Echelon application helps address the particular complexities of an environment with multiple tiers of demand and locations.
Retailers, distributors and manufacturers know well how difficult it can be to manage inventory across a large number of locations…where one location is dependent on another for stock and where the precision of the demand signal is paramount. Companies must make sure that every item customers want is available. All too often, items just aren’t available for the stores in need, or the DC is chock full when the stores are stuffed. That leaves you with shortfalls in one place, excess in another and a situation that negatively impacts cash flow and customer service.
CLARITY Multi-Echelon assures you have the right amount of items in the correct locations, on time and only when needed. Our SaaS application aligns DC availability with store need with daily precision, resulting in a better use of budget funds, and an increased level of consumer confidence.
With CLARITY Multi-Echelon, supply-chain need is projected based on both sales and ordering methodology, including joined-order technique and need-based (rather than only fixed) order schedules. Replenishment is precisely timed—to the day—based on this demand understanding to assure fulfillment without the guesswork that requires additional inventory.
In a multi-tiered supply chain, it’s critical to understand the ordering logic of the lower tiers—a methodology that provides the greatest accuracy in providing a forecast of future demand. What the stores sell is an input to the overall process—but what they order is the most important factor. If DC demand is stores sales from the past, rather than what they’ll order in the future, DC inventory gets out of alignment for the following reasons: