Supply Chain Blog

FMCG Planning: If you like chocolate, now is the time!

Posted by Dave Jordan on Wed, Jan 11, 2017

Overeaten chocolate during the holidays but still want some more? Get yourself and a large blue IKEA bag down to your local supermarket as chocolate is heavily discounted. Easter is not far away this year so why not save a little cash and stock up now - use by dates permitting, of course!

Post Christmas I have been taking a look at International Key Account retailers and seeing how they are coping in the continuing economic squeeze. One question came to mind after seeing well over 20 outlets of various retailers. What do they all do with all that chocolate and other Christmasy confectionery?

Planning Chocolate Sale The same scenario is also present after Easter. Shelf after shelf and gondola after gondola of seasonal chocolate in all sorts of formats, shapes and sizes. Not simple packaging either and it must cost a fortune to pack a 15cm tall chocolate Santa or rabbit into a multi-coloured coffret. To be fair it is not just one manufacturer who has suffered a forecasting blip, every major name chocolate producer appears unable to get it right. For all of them Christmas must be a peak period and one that can make or break the year-end results and with no time left to remedy any sales deficit. Similarly, the timing can also place an un-provisioned hole in Q1 numbers even before you have taken down the decorations.

Of course, nobody wants to disappoint consumers and run out of stock at those peak periods but how can they afford the apparent over-stocking? If the goods are on consignment or “sale or return" then I can perhaps understand why retailers let displays hang around for several weeks. Even then I doubt the retailers would relish wasting valuable sales space on Easter themed chocolate into June and beyond.

Considering the power retailers have over producers I do not understand why stock is allowed to gather dust on shelves. Certainly, for many foodstuffs the listing contracts will contain clauses to withdraw stocks but usually only when the sell-by date approaches or off-take is ridiculously low.

What is the destiny of chocolate Santas and bunny rabbits after the sell-by date arrives? You cannot do much with it, can you? You cannot send it to a sink market in another country and with the vast majority of edibles you cannot recycle the stuff into fresh production as you could with washing powder, for example. If you have to write-off stock you have to pay to have it destroyed professionally and you frequently have to pay VAT on the stock value as if it was a sale.

Whatever the destiny of all that yummy chocolatey goodness, it is indicative of a lack of rigour in forecasting and/or sales expectations. Diverting some investment from stock that does not sell into taking a long, hard look at your Sales & Operational Planning (S&OP) process could offer a very rapid pay-back for those companies willing to break the chocolate losses mould.

As a step further, Supply Chain Analytics can help you to fully understand what is really happening in your peak periods and why you continue to miss your sales targets. Presently, there is a free of charge offer to analyse some of your data and expose the reality of your decision making.

Image courtesy of Nora Ashbee at Enchange.com 

 

 

Tags: FMCG, Christmas, Dave Jordan, Supply Chain, S&OP, Forecasting & Demand Planning, Supply Chain Analytics

An FMCG Distributor Is For Life: Not Just For Christmas

Posted by Dave Jordan on Wed, Dec 21, 2016

Ok, so you are unlikley to see this on a car bumper sticker but FMCG Distributors will have a significant impact on your sales performance, probably your variable pay bonus and therefore your CEO aspirations! How have you treated your Distributors this year? Were they the usual pain in the proverbial - failing to achieve targets, not paying on time, always moaning about trading terms? Of course, some Distributors do fit this stereotype but others are keenly trying to be treated as and to be, equal partners in your business success. But do you see this?

How are things going in Q4? Have you fallen into the trap of the “sales bonus push”? Year end stock clearance FMCG Breaking all the supply and sales phasing rules you have been trying to drum into Distributors? Did you strictly maintain discipline on Sales & Operational Planning or did the last quarter deteriorate into a “sell whatever we've got in the warehouse” scenario?

Companies that spend time and effort in proactively guiding their Distributors, providing relevant training and support inevitably succeed in the market place. Yes, at the end of the day Distributors have to stand on their own two feet but so many FMCG companies assume an organisation calling itself an “FMCG Distributor” inherently knows how to properly support any specific business.

If you do not pay attention to the Traditional Trade (TT) distribution side of your business then you are asking for trouble and that trouble usually ends in divorce along with all the discontinuity baggage separation brings. You need to avoid your choice of Distributors becoming like the English Premier League where managers get about 5 minutes to make an impact before being shown the door. (Strange though, that all these football managerial failures usually find another highly paid role.)

So, as we approach a special time of the year why not think about your Distributors and ask yourself if you have given them a fair crack of the whip?  If not, then you might consider a New Year resolution to develop a strategy for mutual success. This is far better than continually highlighting deficiencies and using backward looking, discipline focussed KPIs to bash them on the head.

Sit down with your RTM Distributors regularly, evaluate their strengths and weaknesses and agree to do something about the latter. Simply running through a Route To Market evaluation together can work wonders in establishing trust and cooperation. Do yourself a favour and do this now before Q1 next year also becomes history.

Click on the RTM link below and go!

CTA RTM Free Download resized 600

Image courtesy of stock.xchnge at freeimages.com

Tags: FMCG, Route to Market, Dave Jordan, CEO, Performance Improvement, Supply Chain, S&OP, Distribution

FMCG CEO Christmas Gift: Implement S&OP – Slade style!

Posted by Dave Jordan on Fri, Dec 16, 2016

Christmas is coming around faster than ever and who better than Noddy Holder and Slade to give a Sales & Operational Planning (S&OP) process to your business as a present. This song has been heard at Christmas every year since 1973! If you have been living in a cave on a remote island and don't know the tune you can click here for the original, boring non-S&OP version.

1 2 3 4.......

Are you looking at your sales chart on the wall? Sales and Operational Planning
Is it the time you have to stop the fall?
You’ve tried overpaying salesmen,
You’ve loaded up the trade
Do you need to find a better way?

Chorus:
So here it is S&OP
Everybody should run one
Look to the future; how?
Six months or even one.

Are you guessing how much you’re going to sell?
Are you suffering high out of stock as well?
Does supply chain always tell you, pre-SOP is best?
So why not work together for a test?

Chorus:
So here it is S&OP
Everybody should run one
Look to the future; how?
Six months or even one.

What will the salesmen do
When they see their targets being met?
Ah ah
They’ll be changing the chart gradient on the wall.
Not for them will sales fall and fall.
When you implement S&OP you make quite a change
Looking back the old way will feel so strange.

Chorus:
So here it is S&OP
Everybody should run one
Look to the future ;  how?
Six months or even one.

Noddy knows best so why not find out about S&OP now and give your business the perfect Christmas gift.

Image courtesy of Nora Ashbee at Enchange.com

 

Tags: FMCG, Christmas, Dave Jordan, CEO, Humour, S&OP, Forecasting & Demand Planning

Case Study: FMCG (Friendly Man Carrying Gifts) RTM (Reindeer To Market)

Posted by Dave Jordan on Wed, Dec 07, 2016

Client :         Santa Claus aka Father Christmas, Kris Kringle, St. Nick or simply Santa

Market:        A large part of the World

Scope:          FMCG Reindeer Route To Market Distribution

Deliverable: Evaluation of RTM against sector benchmarks

table xmas.png

In summary, this Enchange project delivered:

  • A detailed evaluation of the Christmas RTM deployment highlighting strengths and weaknesses.
  • A grading of each core element in terms of capability to deliver the presents in comparison to benchmarks.
  • A framework development plan for parents and Santa Claus.
  • A clear business case for the continuation of Christmas. 

We would like to thank Mr. S. Claus for allowing us the opportunity to evaluate this important Reindeer To Market network. The network is in very good condition and we wish him every success on the 25th December.

Give your FMCG business a Christmas present and evaluate your Friendly Man Carrying Gifts (FMCG) Reindeer To Market (RTM) network. Need help with your RTM deployment? Click here and we will give you a call.

Santa image courtesy of stock images at freeditialphotos.net

                                               Other seasonal Yo Ho Ho posts:

FMCG_RTM_SUPPLY_CHAIN_HUMOUR.jpg* Santa & Opening Presents - Why S&OP is Invaluable at Christmas
* The Twelve Days of Supply Chain

Tags: FMCG, Christmas, Humour, Supply Chain, RTM

FMCG – Hunkering down for Supply Chain Analytics

Posted by Dave Jordan on Wed, Aug 24, 2016

Have you ever “hunkered down”? I remember being asked to hunker down during a supply chain training course many years ago and I had no idea what I was supposed to do. Eventually I had to ask as failing to follow the hunker downwards request appeared to be causing a bit of a problem for the presenter.

This hunkering failure occurred during one of the many versions of the Beer Game in which I have taken part or run over the years. Anyone who has been involved with supply chain activities will probably have taken part in the Beer Game, or the Moussy Game as it is sometimes known in dry countries of the Middle East.

What does the beer game do? The rules are relatively simple and in summary the overall objective is to meet consumer demand for cases of beer in a complex, extended supply chain while controlling unplanned expense on back orders and inventory. The game involves four overlapping and inter-dependent supply chains, i.e. manufacturing, distribution, procurement and a retail outlet. There is a cost penalty for holding excess stock and any backlog unfulfilled orders.

Players rely on colleagues in the other departments to do the right things for the business but frustration soon surfaces. Usually, things do not go well and players feel frustrated because they are not getting the results they expect. Assumptions are made about consumer demand and erratic patterns emerge as backlogs mount and/or massive unnecessary stocks accumulate. It was at this stage in the game I was told to “hunker down……….”.

Does that sound like your own supply chain – not the hunkering bit? Frustration is common between departments who all aim to do the right thing but only have the necessary data and information to do the right thing for their specific area of responsibility at that specific time. Even after careful consideration and informed debate, the real effect of an adjustment can only be seen in the future.

supply_chain_analytics_fmcg_inventory_performance.jpgIF - a big if -  nothing else changes and all assumptions are correct and accurate then there is a chance the desired effect will develop. However, life is not like that and certainly not supply chain life. What can happen?

New launches kick-in and are successful, or not.

Competition by definition is designed to disrupt your plans.

The weather turns out rather different to the forecast.

The economy takes a turn up or down.

Factories, 3PLPs and distributors all suffer performance variability.

Customers and consumers change their needs and habits.

Etc., etc., etc., this list really is endless. Absolutely anything can happen to turn apparently sensible decisions into foolish, forecast failure.

Hey, what about all that IT we have? Doesn’t that help us understand what is going on? This should tell us what is really going to happen in supply chains? No, not necessarily. Common supply chain IT tells us what has happened, what is happening, where and when but not precisely why an event happened or what will happen.

Subtle differences perhaps but to up your game you need to hunker down with Supply Chain Analytics to gain a full unexpurgated understanding of how changes you make today will impact the future and more importantly, how you can change that future.

Yes, you can.

Image courtesy of Enchange at Enchange.com

Tags: Customer service, FMCG, CEO, Inventory Management & Stock Control, Supply Chain Analytics, IT

Olympic level FMCG performance or simply distributor over-stocking?

Posted by Dave Jordan on Tue, Aug 16, 2016

Wow, four years have flashed past since the London Olympic bunting was packed away and the metal polish put back under the sink. The 2016 Rio games are well and truly underway and the cauldron flame is alight for the duration.

Over 11,000 competitors from nearly 200 countries and even a refugee team have been getting up ridiculously early to sweat and train at whatever sport they excel. That is a huge number of really fit people who are focused on being in peak condition for a once in a lifetime event that might last less than 10 seconds or several hours.

Taking the 100m sprint as an example; the top sprinters will have 4 opportunities to perform. A combined window of 40 seconds to reflect all that money, time and effort that has been expended to qualify and perform to the best of their ability. What if they stumble or don’t hear the starting gun, drop the baton or worse still, get disqualified?

FMCG_INVENTORY_DISTRIBUTORS_CEO.jpgAll that planning and careful preparation to get to the final of the competition only to be disqualified for being a little twitchy waiting for the starting pistol to crack out loud. Or, sticking your foot just a millimeter into the triple jump plasticine. Hey, don’t worry, there will be another chance for you in Tokyo………

You are not in the final to perform in front of millions of people watching around the world. Nobody will see you perform and instead of your stock rising and attracting more lucrative advertising deals you will be remembered as that poor guy with the twitch or that girl with the too-big training shoes.

Cue segue. The global economy seems permanently stuck in “weak and unpredictable” performance mode with no obvious way out even for the dis-United Kingdom of Brexit. Imagine you are a yellow CEO Pac-Man (do they have female Pacs?) nibbling away at the dots and then getting stuck in a dead-end. What next, nowhere to go, panic, panic! Despite this, many CEOs will be under extreme pressure to “make the numbers”. How exactly? While all this Olympic activity is taking place is your physical FMCG stock rising as we move through the second half of the year?

Despite what sales and finance colleagues will spout, there is a limit to how much stock can you push into your trading channels and this includes International Key Accounts. Coercing (or more likely forcing) a distributor to take more and more stock may appear an easy option but it is an unsustainable action that damages your business in the long run.

At some stage a brave CEO has to say enough is enough and start a period of controlled destocking despite the effect this will have on top and bottom lines. Loading the trade does not happen by accident; you know you are doing it so stop deluding yourself and HQ and do something! Put a stake in the ground that sets the tone for the future.

You may believe that excess inventory means you will never be out of stock or off the shelves but this is not the case. The available stock will inevitably be unbalanced and just when you expect your long planned relaunch to fly out of the blocks and hit the shelf you also twitch and realise you have 9 months’ stock of the old product sitting in distributors warehouses.

What a disappointment. A waste of money, time and effort, i.e. an Olympic gold medal-sized goof and HQ is unlikely to give you another chance in a lot less than 4 years’ time.

Image courtesy of stockimages at freedigitalphotos.net

 

Tags: FMCG, CEO, Distribution, RTM Assessment Tool, Inventory Management & Stock Control

Frock Stocks & FMCG Supply Chain Inventory Decisions

Posted by Dave Jordan on Thu, Aug 04, 2016

Senior Management has been on quite a shopping spree over the last few months taking advantage of various big name high street stores that have lost their lustre and even their premises in some cases. The demise of these familiar UK brands has nothing to do with Brexit and the variable value of Sterling but in one case a run on the Green pound has been responsible…..

Of course this has had several knock-on effects and not least the amount of money “invested” in clothes and shoes is now significant and that money is largely sunk - the market for unwanted or out of style apparel being extremely limited. I hate to think how much money is hanging in the wardrobe but that raises a second issue.

The trusty old Grink pine wardrobe from IKEA has reached capacity. As a result, the small Allen Keys have been out causing blistered fingers in order to erect another Grink plus a wall mounted Plop shoe tidy. Another investment to store items that are not in regular use. In fact, if you consider that the vast majority of clothes and shoes are seasonal, at any one time most of the space is taken with things you would not dream of wearing. Fake leather Boots in August? A floral summer dress in December? (NB Northern hemisphere before someone comments!) A Superwoman onesie at any time!

FMCG_INVENTORY_STOCK_SERVICE_CONTROL.jpgWith so many clothes squeezed into the now two Grinks they are so full that finding anything in a reasonable time is difficult. Senior Management might well be correct that there is a perfect dress in there for a particular special event but can you find it? Sooner or later all recollection of what is in the wardrobes has been lost as the memory grey matter section diminishes.

Worse still, fashion trends do not stand still so what was a “must have” last year may be considered an insult to the designer where they to be worn the following season, luvvie!  

So, what have we got and what have many, many FMCG and pharmaceutical companies?

High working capital – all that money tied up on stock that may not be useful.

High storage costs –  you will be paying too much for storage whether you manage logistics internally or outsource to a 3/4PLP. (Don’t expect them to reveal that you are storing too much!)

FIFO - stock age is not monitored and write offs persist. Old stock is not liquidated before expensively assembled relaunches hit the shelves. You do not actually know what is there contributing to ongoing working capital.

High stock shrinkage – loss and damage have a higher incidence when stock is not correctly monitored and inventory levels are kept high – harder to miss.

Stock accuracy - cycle and annual stock counts are difficult to execute and usually provide unwanted shocks at reporting period ends.

Efficiency -  when warehouse capacity utilisation above 80%, operational efficiency stalls and soon plummets. Picking becomes a hazard and the warehouse simply does not have sufficient doors to move goods in and out.

When supply chain processes are inefficient and specifically inventory build decisions are not fully assessed and evaluated, you inevitably overstock as planners do not know what else they should do to protect sales and customer service. Conversely, when this happens you actually lose sales and offer poor customer service.

Does this provide the basis for a profitably growing business? Of course not but so many companies remain oblivious to the processes applied and decisions that are taken that bulk-out the supply chain.

Image courtesy of photostock at freedigitalphotos.net

Tags: Customer service, FMCG, Pharma, Inventory Management & Stock Control, Supply Chain Analytics

FMCG Supply Chains: Searching for the next “big thing” – it’s here!

Posted by Dave Jordan on Wed, Jul 27, 2016

I had an informal discussion with a small group of FMCG Supply Chain VP/Directors last week. I well remember the occasion as it was the day UK had its annual summer but the discussion was memorable for more than that fact. After rushing back to base in the inevitable evening rain with my briefcase as the only shelter I wrote out some notes from the session and they worried me.

Supply chains have moved on a long way from the early days when bits and pieces from other usually incongruous functions were glued together to form a nascent coherent function. I cannot list the huge number of initiatives that have taken place in the intervening years but some global supply chains are so slick that even sales people are almost impressed! Not all new ideas resulted in sustainable changes but some of the more obvious candidates like S&OP, corporate buying, ERP deployment and 3PLP partnerships have more than earned a return on the investment.

Unfortunately, you cannot stand still and supply chains everywhere are continuing to eke out incremental improvements in some of the more mature cases or substantial step changes in those less developed. Some companies clearly have plenty of scope for improvement but what about those who are at the top end of the Gartner Oscars list?

Is there anything left for Supply Chain VPs and Directors to achieve? Has all the cutting edge, innovative stuff happened? Are there really no more storming, monster initiatives coming over the hill? Is this as good as supply chain is going to get?

Talking of monsters, let me go back to the senior group discussion I mentioned at the top of the page.  S&OP and its younger sibling Integrated Business Planning have stabilised virtually all of the major multinational supply chains. Bringing a degree of discipline across all functions and a smaller improvement in sales forecast credibility has helped companies squeeze positives in top and bottom line performance.

Heavy investment inFMCG_Supply_chain_analytics_inventory_stock.jpg ERP upgrades have added a degree of financial rigour and reliability to businesses although the underlying thought is that even now, nobody really gets value for money from those slick and shiny IT packages.

I can imagine all these hungry supply chain executives searching for something that can make a lasting difference. You know what? They are standing there while it’s raining soup but they’ve all got forks!

The one area which has been largely untouched by the various supply chain initiatives and IT tools is inventory. Boring, boring stock levels; the planning manager’s crutch, the sales manager’s obsession, the working capital bane of management finance managers lives.

You may argue your stock is under control. The level is the right number of weeks cover. The value is at or below the annual plan targets. Even the number of pallet spaces is on track at the 3PLP warehouse. All highly likely but are those stock levels really supporting the business or simply just propping it up? 

Look carefully and I think you will find it is the latter. Inventory will not be aligned with precise market activation and selling out plans and is therefore stifling rather than facilitating growth. All the numbers may apparently support the business objectives but look closely and you are likely to find very little science in how forward stock cover is defined and specifically by SKU.

There is a solution. A sensible low cost solution that works and tellingly, it has been designed by supply chain experts for supply chain people!

Put your forks away and read about SupplyVue supply chain analytics. This works!

Image courtesy of Ohmega1982 at freedigitalphotos.net

Tags: FMCG, S&OP, Inventory Management & Stock Control, Supply Chain Analytics, Integrated Business Planning

Postman Pat, Postman Pat, Postman Pat & his Supply Chain hat

Posted by Dave Jordan on Wed, Jul 06, 2016

I recently peeped outside of the FMCG and Pharmaceutical world and took a look at the amount of empty beds in the National Health Service in UK and how a little alternative thinking plus basic demand and supply planning expertise could improve bed utilisation. Today it is the turn of the Royal Mail and all those “black and white cat” postie types to be in line for my critique. 

Before you say that the Royal Mail is not a proper supply chain, it is a supply chain and a very complicated one at that. Apart from the reducing but still significant Christmas card peak, this is a business that cannot really forecast how many letters and parcels will be dropped into Post Offices and Post Boxes for delivery on a daily basis. Or perhaps they can or should? Is it any different from the daunting, daily, dynamic demand volatility experienced in Tesco, Asda and Aldi etc.?

Anyway, that is not the issue on this occasion but it is about the Royal Mail redirection service which should be a very straightforward formality. You move to a new address and pay the Royal Mail to keep an eye on your letters and parcels and forward them to your new abode. This is not as simple as it sounds as finding that gas bill in a plain brown envelope must be very close to searching for a needle in a haystack. Nevertheless, they have been doing this for ages and in large numbers so should be very proficient.

FMCG_MAIL_POSTAL_SUPPLY_CHAIN_SERVICE.jpgNot this time. They got it horribly wrong from day one and continued to do so as even “signed for” mail which must be capable of automatic sorting was sent to the old address. Luckily we are still in the locality and in contact with the remaining Neanderthal student residents who in their few conscious periods send vowel-free texts letting us know Postman Pat has left something in the heiress’s name. Before they have the chance to eat or smoke what has arrived we quickly pop down and rescue items that slipped through the redirect net. That net must have holes the size of Ronaldo’s ego.

After repeated telephone calls and emails and the release of only a minor amount of my pent up frustration from afar, Postman Pat has refunded all costs and is now carrying out the service – very efficiently now, incidentally – free of charge. What a waste of time, energy and other resources!

I have no idea what the inside of a sorting office looks like or what processes and procedures are in place or their daily challenges but failure to carry out core advertised service is very disappointing. Delivering enveloped and packaged mail is what they do best; if they cannot get that right then what chance do they have with other value added services?

Walk into a pub on a scorching day (ok, so that is not going to be in UK) to be told sorry, no beer. Step into a supermarket to find no bread, milk, tea or cheese! Pull up at the McDonalds drive-in to be told no fries today - actually no bad thing!

You have to get the basics right or your credibility with existing and potential new clients is severely limited. Some organisations bend over backwards to gain new business and rightly so but why don’t they bend further backwards to keep that business? In FMCG and Pharma I find business retention is far harder than finding it in the first place.

Image courtesy of Ohmega1982 at freedigitalphotos.net

 

 

Tags: Customer service, FMCG, Performance Improvement, Pharma, Forecasting & Demand Planning

UK NHS Supply Chain: bed-busting benefits of patient SKUs

Posted by Dave Jordan on Wed, Jun 29, 2016

Some time ago I looked at the often dreadful customer service offered by FMCG and Telecoms companies in CEE. Of course, this avoidable malaise is not restricted to that part of the world. After being in UK for a few weeks I have experienced really poor service from organisations you would think had top notch, high performing supply chains.

The Royal Mail and all those “black and white cat” types will be the subject of a later blog but first in line for critique is the National Health Service.

The NHS in the UK is a precious gem and really is the envy of most other countries where credit cards have to be produced before you hear the Marigold’s snap on. The NHS is supported by a seriously complex, unpredictable and volatile supply chain. On this occasion supply chain certainly includes the provision of medical supplies, equipment, foods to multiple locations around a hospital site. (I am tempted to bang on about the quality food or to be more exact, the amount of wasted food as most of what I see is not going to win any awards.)

My bone of contention with NHS service is about beds, the availability of which is a constant battle which is seemingly never won. Operations are regularly postponed when there are no beds available for post-op recuperation. Yes, some beds are certainly blocked by long term patient residents but my observations suggest there are actually many beds woefully under utilised. To alleviate the problem, I am certainly not suggesting bed sharing which does occur elsewhere. (I have personally seen a single bed with 4 occupants at the same time in a certain country.)

While it is important patients are treated with the utmost dignity and with the best care in the world I think NHS bed availability would be improved if patients were considered as SKU’s on a supermarket shelf. Just take the emotion away for a moment and consider how this might work.

Each bed is shelf in a shop and the optimum situation is to see all these shelf locations full and more importantly, replenished as soon as stock (patients) moves off the shelves (beds). As with transferring stock from the Lidl back of store to gondola ends, this should not be rocket science. And quite right too as long as decisions are made in the optimum sequence and information is in full flow.

Admittedly based on my massive sample of 1 hospital, I see the following sequence of activities:

  1. NHS_SUPPLY_CHAIN_BED_PLANNING.jpg1. Patient gets ready to leave and sits in a chair waiting for discharge.
  2. 2. Nothing happens at the bed.
  3. 3. A patient leaves the bed and is discharged.
  4. 4. Nothing happens at the bed.
  5. 5. The bed is stripped and all cups, jugs etc. are removed.
  6. 6. Nothing happens at the bed.
  7. 7. Bed and surrounding area are cleaned and the bed re-made.
  8. 8. Nothing happens at the bed.
  9. 9. Eventually, a new patient arrives to fill the bed but this can be several hours and often overnight, after the vacancy was first identified.

Just a little bit of basic demand and supply forecasting plus timely information transfer would see a far higher utilisation of available bed space and over the period of a year, noticeably shorter waiting times.

Ok, so I know little about the intricacies of the NHS and maybe other hospitals are slicker in their bed allocation but I feel it is a huge opportunity. A change in mindset and a willingness to learn from other supply chains could prove invaluable. I did offer my services to look at this acute bed shortage problem and was welcomed as long as I had previous experience of working within the NHS…….

Isn’t that the problem? If you are not open to new ideas and innovative solutions, you will get nowhere while the NHS wastes money on incestuous internal studies and reviews. Remember Einstein, who probably did have good knowledge of rocket science; “Insanity: doing the same thing over and over again and expecting different results.”

Image courtesy of Suriya Kankliang at freedigitalphotos.net

 

Tags: SKU, FMCG, Dave Jordan, Forecasting & Demand Planning, IT, Information