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What is role of demand planning in Logistics? by Soeren Rau

Publicado por Blogistics17 octubre 15, 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

The inventory manager must balance the demand and the supply. The organisation has to try to fulfil the demands of customers and at the same time they need to maintain adequate supply of materials and goods, this is possible with a good inventory management. Underneath is a list of the common inventory management techniques: Just in time: You buy the inventory a few days before it is needed for distribution or sale so that it arrives just on time. ABC analysis: The goods are divided in three groups, where the one needs to be filled more frequent than the other. Dropshipping: You don’t have inventory costs, the order is directly transferred to the customer. Cross-docking: The incoming semi-trailer trucks or unload their materials and load directly in the outbound trucks, so no or a small storage is needed. Bulk shipments: You purchase and stock your products in bulk. It costs a lot, but you always have the products in no time for your consumer. Unilever, a compan...

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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