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Demand Planning in Logistics by Pilar Canales

Publicado por Blogistics17 octubre 13, 2017

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IKEA case: warehouse and store are one entity by Carla Casas

IKEA CASE: WAREHOUSE AND S TORE ARE ONE ENTITY Managing inventory cost-efficiently is key to optimize profits. We can observe some companies that perform better than others when it comes to storing management. It is interesting to analyze the case of Ikea, one of the largest furniture retailers worldwide. Ikea although storing a large quantity of products is able to offer high quality furniture at affordable prices. This is mainly due to its unique supply chain and inventory management techniques. Focusing on inventory management, warehouses and stores in Ikea are one entity. So consumers can observe the products in the showroom and then obtain the products themselves from the floor pallet location. Moreover, at the night the warehouse is replenished with the products sold during the day. Ikea follows an inventory strategy called: “cost-per touch”. This theory says that the less people touches the product the lower the costs incurred. So in this case, customers getting the f...

Inventory management in the supply chain by Ellen Thiry

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Demand Planning in Logistics: Tesco and Otto by Alba Castanyer and Carla Casas

Demand planning in Logistics: Tesco and Otto Demand planning is key in the supply chain management process. Its aim is to generate well founded forecasts, this way companies are able to reduce inventory stock outs, minimizing safety inventory levels, arranging production efficiently, avoiding costs over out dated products, organizing transportation more effectively or even using forecasts to take decisions on promotions, pricing and purchases. One example that we found interesting regarding demand management is Tesco. In 2013, Tesco started using big data to plan demand and improve efficiency. They use a combination of data obtained from different sources such as mobile phones, social media, internet searches, weather information and also internal data regarding their sales in each store. Using algorithms the company has managed to improve stock levels for each store and particular product. One example of their improved efficiency is that the program increases the demand...

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