The time delay generated by the longer supply chain significantly increases the chances of both stock-outs in the near term, and excess and obsolete inventory in the long term.
This increase in system maintenance quickly created stock-out conditions in the supply system.
‘We now see what we have out there weeks earlier than before, which helps us avoid stock-outs and keep our own inventory levels down,’ she says.
‘Drug stock-outs have been reduced from 15% to only 4.5%‘.
This high-level forecasting results in store-level stock-outs among retailers and dissatisfied consumers.
Collaboration also improves customer service by reducing stock-outs, giving consumers what they want when they want it and creating the opportunity for significant results to top line sales and bottom line profits.
These inventory management schedules permitted budgeting of raw material expenditures and minimized the risk of stock-outs by identifying seasonal variation in demand.
This system reduces the need for retailers to stockpile large inventories of a growing range of products, thereby reducing their risk of stock-outs, markdowns, and inventory carrying costs.
This virtually eliminates stock-outs and minimizes downtime waiting for parts.