Tag: inventories

Supply chain and environmental risks

18 May 2021

Since the health crisis began, supply chains have suffered unprecedented strain and disruption. While COVID-19 has brought their weaknesses and lack of resilience to the foreground, supply chains have become more crucial than ever before. But should we expect further upheaval? According to CDP, who collects environmental data from 8,000 companies, environmental risks could directly

Read more

alu

The metallurgy sector facing a sharp rise in the price of raw materials

1 April 2021

The first lockdown in March 2020 caused a sudden halt in economic activity and, therefore, a drop in demand, and for more than a year, many metallurgical companies have been reducing or stopping operations altogether. Although demand is now picking up, the market is facing a new challenge: the shortage of raw materials, and prices

Read more

beer game

How we killed the bullwhip effect and the beer game!

23 June 2020

Divide your inventories by 2 while decreasing shortages. What a bold statement we claim! This article aims at explaining how it is possible to achieve such outcomes with numerical simulations and simple cases. We will explain below with simulations the two main differentiators of Flowlity : dynamic safety stock and extended Supply Chain synchronization.  

Read more

DDMRP is already obsolete. Brace yourself for the future of Supply Chain Planning !

26 May 2020

The DDMRP* method was invented by Carol Ptak and Chad Smith in 2011. I participated in the first European training session of the DDMRP in May 2013 given by Carol Ptak in Paris. I am therefore a CDDP (Certified Demand Driven Professional) from the very beginning. I was impressed at first sight by what Ms.

Read more

inventories supply chain

The nonsense behind the current definition of inventory policies

29 April 2020

For years, the question ‘what is the right level of stock’ has been at the core of every organization. Being able to precisely determine that level allows to minimize the cost of inventory while achieving the target service level that allows to reach the desired brand positioning. However, we are forced to notice that nowadays

Read more

inventories

Flowlity: Why and how to divide inventories and shortages by 2?

7 April 2020

The starting point Most companies are not really aware of the true cost of holding inventory. Every year, billions of dollars are lost in the distribution and manufacturing sectors: either in shortages or in excess inventory. See (1). In 2020, most companies are equipped with an ERP and have a good visibility over their current

Read more