Supply Chain Blog

FMCG/Pharma: Sales time running out fast in Q4; load the trade?

Posted by Dave Jordan on Wed, Oct 22, 2014

Like students cramming for examinations, a squirrel storing up acorns for dark, cold, winter hibernation or a politician telling all sorts of lies before an election, time is running out and that time is nigh for FMCG/Pharma CEO’s. If your business closes the books at the end of December then you have less than three months left to make a difference before the year slams shut. Will your next job be Country Manager Falkland Islands or VP Europe?

FMCG Pharma CEO year end sales loading resized 600If all your competitors had the same book closing deadline then the task might be easier or at least the playing field may be level. However, depending on the home country of competitors they could be closing their book at a completely different time of the year and some are not even close to calendar year timings.

That adds a bit of spice doesn’t it? You are searching for every last penny of sales and savings while your competitor with a registered office in South Africa is still sitting on a huge advertising support budget. Yes, at some stage in the future the financial advantage boot is on the other foot but now is the time you have to dictate the success (or failure) of the year.

On the 1st October you think you have three months to go but you probably don’t! You might have Thanksgiving taking a few days out of your retail opportunity or Christmas which really queers the pitch at the end of the year. Christmas may well be a peak time for many FMCG brands but it is also a difficult time for producers as days and staff are lost to holidays and the weather in the northern hemisphere can dump a lot of snow on your logistical efforts to get stock delivered. In other parts of the world you have moving religious eid holidays placing pressure on the sales numbers.

Will you resist the temptation to sacrifice Q1 next year in order to reach current year targets? Even if you have a juicy new role in the pipeline decisions you make now will still impact executives even if they move on before the effect of any “trade loading” arises. Top team pay increasingly includes elements relating to the ongoing performance of the previous employing unit. So, if you invoice your entire warehouse contents to customers at 23.59 on 31 December and the company sells very little in Q1 you know you will be found out. Don’t do it!

You cannot stop time – even Joan Collins has finally realised that – so get the top team together, make some choices, make some decisions, insist on alignment and openness and plan to activate the required sales off-take for the few remaining selling days available. (Psst, that’s called Sales & Operational Planning (S&OP).)

Image courtesy of Renjith Krishnan at freedigitalphotos.net

 

Tags: FMCG, Dave Jordan, CEO, Pharma, Supply Chain, S&OP

FMCG: Top ten tips for totally terrific S&OP – not a fishy tale!

Posted by Dave Jordan on Wed, Jul 16, 2014

I have travelled quite a lot over the years and tried to add one new country each year until I stumbled at 45. Many were holidays but a majority were on business with very few opportunities available to actually see the place. “Oh, you must be so lucky to travel” – not. During the hundreds of flights taken I have seen some very unusual things aboard aircraft.

S&OP_Top_10_Tips_MrCEOOn one flight in the Middle East the passenger in the business class seat next to me was a hooded falcon. Taking a flight out of Kuala Lumpur I soon realised I was the passenger list and that is a rather spooky situation when you are in a deserted Boeing 747 – service was ok, though. My most frightening experience was seeing man carry a blister pack of craft knives on board!

More recently, I scanned surrounding passengers in that dull period on a 3 hour flight after the inedible food had been consumed and before the hopeful sale of duty free items to see a young girl holding a small, clear plastic bag with a live goldfish inside. How does that happen in these security conscious days? I suppose if the amount of liquid was less than 100ml it could qualify as “safe” to carry on but what if the fish was not really a fish........? Would the fish need a pat-down search? What would be the scale of the risk .....groan.

When you are trying to secure the safety of hundreds of passengers on a plane and potentially on the ground you really do need a set of strict and consistent rules as if one airport drops its guard something significant could be missed.

Similarly, when you are running an FMCG or Pharmaceutical S&OP you need a set of consistent and widely understood rules and measures to get the best out of the process. Ok, so the implications of bending the rules are not usually life threatening in this context but getting this wrong can certainly bring your career to halt and make those nice bonus payments few and far between.

Top ten tips to a totally terrific S&OP:

  1. CEO and senior board buy-in. Without this don’t even bother to start S&OP.
  2. Appoint a process leader who knows S&OP inside out and has gravitas in the company.
  3. Create the role of Data Manager to turn data into information and a facilitate focused actions.
  4. Don’t promote or advertise S&OP as a Supply Chain process or one that it is designed to improve SC performance. Yes, it will but the ultimate priority is higher sales.
  5. Agree and display a set of KPIs that involve all disciplines to motivate co-operation and team working.
  6. Get the right people involved in the meetings – don’t allow people to delegate to junior colleagues.
  7. Get meeting dates in diaries for at least 12 months, rolling.
  8. Insist on personally seeing minutes and action lists; do not let meeting discipline fall away.
  9. Be hard on dissenters and laggards.
  10. Do not stop S&OP or you will end up with a business far worse than when you started.

If you stick to these rules you will be successful and I have now seen this achieved in many disparate environments leading to improved top and bottom lines. No, it is not rocket science but sticking to the rules can make your sales rocket.

Image courtesy of Dan at freedigitalphotos.net

Tags: FMCG, Dave Jordan, CEO, Performance Improvement, Pharma, S&OP, Forecasting & Demand Planning, Sales, Integrated Business Planning

Gartner Top 25 Supply Chains: Did your FMCG company make the list?

Posted by Dave Jordan on Wed, Jun 11, 2014

The annual Supply Chain “Oscar’s” have been announced by Gartner for 2014. I list the top 10 here but to see the full list of top 25 global Supply Chains please click and surf here.

  1. Apple
  2. McDonald's
  3. Amazon.com
  4. Unilever
  5. Procter & Gamble
  6. Samsung Electronics
  7. Cisco Systems
  8. Intel
  9. Colgate-Palmolive
  10. The Coca-Cola Company

Many of the usual suspects are present as you would imagine but what is very interesting for me is seeing Unilever in the top group after being as low as 21st in 2010. Keep up the good work boys and girls; my pension depends on you.

supply_chain_top_performers_2014I doubt any SC professional will get over-excited about being in the top 25 but what about those names that are not present? Some will have opted not to take part and others may be in the midst of huge change and could not be contenders in the assessment period. Also, I guess some people do not want to be at the top of the pile either as the expense to get there and stay there may not be their priority for investment. However, if your major competitors are on the top 25 list and you are well off the pace then surely that must be a problem.

The top 10 has four multi-national FMCG giants so the process of getting stuff onto supermarket shelves is clearly being done very well by some companies. So if we assume the science behind the assessment is sound there are a large number of companies doing something wrong or at least not nearly as good as others.

Electronics and computing related companies are well represented and they of all people will be exploiting the technology they have invented to optimise availability and speed of supply. Amazon is another interesting company in that it now acts as a Supply Chain company rather than a books/CD/DVD supplier. Their product range is huge and they are successful by having a very slick Supply Chain. You can buy a new dress from all sorts of places but possibly only Amazon will get it to your door the very next day at a fraction of the cost of that charged by couriers for a similar service.

What about McDonald’s fast “food” restaurants? You may know I am not a fan of their offerings but you cannot knock them for their success. The consumer pull on their burgers and fries or mici here in Romania, is very powerful and as long as everything is available when you approach the counter you will buy and be wished a nice day. They do not always get it right though as I noted a few months ago.

Not so long ago Supply Chains were considered to be just an annoying cost on the books but no so now. Those companies that have invested in Supply Chain people, processes and performance are clearly reaping the benefits.

Image courtesy of Stuart Miles at freedigitalphotos.net

Tags: FMCG, Dave Jordan, Performance Improvement, Telecoms, Pharma, Supply Chain

Integrated Supply Chain Planning – 1 Reason Why It Is Difficult

Posted by Michael Thompson on Mon, Apr 14, 2014
In my previous two blogs on the subject, I outlined how producers (manufacturers) can achieve very significant improvements in the financial performance of their supply chains by a process of integration between the primary and secondary supply chains (Integrated Supply Chain Planning – The Number 1 Opportunity). I then described how to achieve focus when considering global supply chain integration programmes of this type by looking at different market profiles (Integrated Supply Chain Planning – 4 Opportunities and 2 Quick Wins).

This raises the following question.  If the opportunities exist (they do), and they are so significant (they are), and the process of achieving the success is well established (it is), why have more companies not simply gone ahead and implemented these changes?

The short answer is that some companies have. However, many haven’t.

There are several explanations but actually only one real reason.

To integrate the primary and secondary supply chains almost always involves the co-operation of two company departments – supply chain for primary and commercial (sales / trade marketing) for secondary.

Let’s look at the proposition from the point of view of the Supply Chain Department.  The key benefits relate to lower inventory and that’s a good thing for a Head of Supply Chain.  Integration benefits are long term and make for a more effective and responsive supply chain.

Now let’s consider Sales.  They will get fewer stock outs (higher sales - that’s good), more effective trade marketing (good again) and better deployment of product launches (also good of course).  So what’s not to like?
win_win_situation
The problem is this – the lower inventory applauded by Supply Chain, is also a one-off reduction in sales, very much loathed by Sales.  It is only a short term one-off hit to sales.  However, that matters.  If, for example, stock is reduced by 2 weeks, that is nearly a 4% reduction in annual sales.  Such a reduction is simply not palatable for most Sales Directors or CEO’s.  
So we have the competing interests of the Supply Chain and Sales Departments, long term vs short term considerations.  Moreover, for multinationals we also have the competing interests of each market (and Country Manager generally bonused on sales and profit), regional and global Heads of Supply Chain (whose bonuses will include working capital tied up in inventory), regional and global Heads of Sales (only the top line matters for them), regional Heads responsible for regional bottom lines and so forth.

To achieve integration of the primary and secondary supply chains on a global basis, just about all of the above stakeholders (and more) will have to agree.  And the only person who holds sway over everyone is often the global CEO.

So it may come down to this.  If you want to integrate your business with that of your distributor in, for example, Nigeria, you may need the approval of the Group CEO.  And that is the number 1 reason why it is difficult.   
However, for those who think about the long term and are prepared to grasp this particular nettle, the rewards are plentiful indeed.

 

Image courtesy of www.freedigitalphotos.net

Tags: FMCG, Route to Market, Pharma, Michael Thompson, Supply Chain, Sales, Distribution, Inventory Management & Stock Control, Integrated Business Planning

Integrated Supply Chain Planning – 4 Opportunities and 2 Quick Wins

Posted by Michael Thompson on Wed, Apr 09, 2014
In my previous blog on the subject (Integrated Supply Chain Planning – The Number 1 Opportunity), I outlined how producers (manufacturers) can achieve very significant improvements in the financial performance of their supply chains by a process of integration between the primary and secondary supply chains.
 
The key is data exchange between the producer and their key distributors.
 
Given that global multinationals operate in a large number of markets and generally with a large number of distributors, the question of how to achieve focus becomes very important when considering global supply chain integration programmes of this type.

The opportunities from such integration are dependent on the particular characteristics of each market.  These depend on the following:

  1. Direct vs indirect distribution
  2. Proportion of sales via Key Accounts vs Traditional Trade
  3. Distributors characteristics in each market – their number, degree of exclusivity and competency, for example.
 
Now let’s look at different market profiles.  The integration opportunities can be summarised as follows:

Integration opportunities for different market profiles      
We can see from the above that there are four integration opportunities of which two are quick wins:

  1. Where a market is serviced via direct distribution (i.e. the producer undertakes its own distribution), the long term solution is to establish internal direct data interfaces with key warehouses.
  2. Where Key Accounts predominate (e.g. hypermarket chains in Western Europe), the long term solution is to establish direct EDI interfaces with Key Account customers.
  3. With markets where there is an exclusive distributor there is scope for Quick Wins.  This can be achieved by establishing a stock replenishment process at key distributor stock locations and ensuring that distributor stock data forms a key input to the sales forecasting process of the producer.  The data exchange to enable this process could if needed be manual in the first instance (for the most important “Category A SKUs” for example). In the longer term EDI interfaces can be established.
  4. In markets where there is no exclusive distributor, Quick Wins are still possible provided there is a relatively small number of significant distributor stock locations – i.e. where there is a small number of key distributors.  Integration can be achieved via a similar process to that above in No 3.

For producers, analysing their markets in this fashion will identify where opportunities exist including for Quick Wins.

I would be interested to hear of readers experiences with this type of supply chain integration … as it is often not as easy as it seems …
… but not for the reasons you may think.

I will explore this in my next blog. 

Image courtesy of Enchange Ltd

Tags: FMCG, Route to Market, Performance Improvement, Pharma, Michael Thompson, Supply Chain, Distribution, Integrated Business Planning

Integrated Supply Chain Planning – The Number 1 Opportunity

Posted by Michael Thompson on Mon, Apr 07, 2014

Enchange has been working with many FMCG and Pharmaceuticals multinationals for years on projects to improve their primary supply chains.  
We have also been working with many of the same companies on Route to Market (RTM) projects.

For the sake of clarity, by “primary supply chain” we mean all processes (e.g. planning, sourcing, manufacturing, etc.) up to the point that finished goods are in the producers’ warehouse before the stock is sold to customers.  By “route to market”, we mean the processes by which finished goods leave the warehouse and arrive on retailers’ shelves, often via third party distributors.  Some people also refer to the latter as the secondary supply chain.

One particular client is involved in a number of global projects updating its primary supply chain including implementation of a new SAP and APO platform.

A few months ago we set ourselves a challenge at Enchange.  How, we wondered, could this client achieve a step change improvement in financial performance?  Bear in mind that they were already involved in a very large global project to do just this.

So we held a workshop.  Our conclusion?  There remained a significant gap in their supply chain improvement plans.  It was integration of the primary and secondary supply chains.  Once stock was sold to their customers, there was limited interest as far as the producer supply chain was concerned.

fmcg supply chain planningAnd therein lay the gap.  Or rather the opportunity.  If customer (e.g. distributor) data was formally integrated into the primary supply chain processes, there will be significant benefit for our client (the producer) and their distributors.
 
The key to this is data.

If there was greater and more reliable visibility of trade stock, the producer will be able to reduce its own finished goods stock.  Sales and stock data can be exchanged with the producer by EDI interfacing with distributor systems or by use of ‘virtual links’ where key data is presented by the distributor and extracted into the producer’s systems.  With this data a VMI type of relationship can be established whereby the producer replenishes distributor stock, rather than waiting for an order from the distributor.

The benefits for the producer will be finished goods inventory reductions and a reduction in month-end sales peaking.  Direct bottom line increases will also be possible following reductions in distributor discounts, the next time that contracts are negotiated.  Additionally improved trade stock visibility will drive improved product launch and trade marketing effectiveness including with promotions.

For the distributors there will also be benefits.  Stock can be also reduced and this will free up valuable cash and space.

So we presented these findings to our client.  The response was very positive.

The next question that was asked.  How can we focus our efforts with this approach?  I will deal with this in my next blog.

 

Image courtesy of Enchange Ltd.

 

Tags: FMCG, Route to Market, Pharma, Michael Thompson, Supply Chain, Forecasting & Demand Planning, Inventory Management & Stock Control, Integrated Business Planning

FMCG/Pharmaceutical S&OP: Remove the fear from sales forecasting

Posted by Dave Jordan on Thu, Mar 20, 2014

I think by now I have been exposed to around 100 different Sales & Operational Planning processes (S&OP) in sectors from FMCG to Pharmaceuticals to Agrochemicals. These processes have been global, regional and very much local-for-local processes in largely developing markets on 3 continents. Within that matrix of variables there are frequently large differences in the ideal process, meeting schedule/sequence, quality and outcomes but there is one consistency.

I know this is a generalisation and you may believe I am biased but all of these companies would be enjoying much better success if the sales function really bought into S&OP. Attending all the meetings is not enough. Providing data at the correct time is not enough. Selling to the company target is not enough either when the quality of sales forecasting is consistently variable and/or low.

SSales individuals and teams need to fully commit to S&OP and be a helpful and proactive part of the process. Sitting outside the process and sniping at colleagues is counter-productive and only serves to ensure sales growth is a pipe dream. In many companies the sales bonus system is based upon value as a rolled-up whole and CEO’s do not help here by pushing sales to sell their grandmothers as long as the value number is achieved.

Sales forecast accuracy is not about being 100% accurate each and every period as a forecast will always suffer a degree of inaccuracy. When did the weather people get the forecast 100% correct? Did anyone expect Wigan to beat Manchester City in the FA Cup recently? No, of course not and nobody expects a sales forecast by sku to be perfect. This is simply not going to happen.

Forecasting towards an overall monthly target value will get you nowhere fast unless you have a handful of skus. Few companies are in that position so forecasting by sku is vital for S&OP and company success. If that sounds like a daunting task in your business then perhaps you have too many skus!

Let us look at a 5 point plan to remove the fear of sku forecasting and get sales people motivated by S&OP involvement and results.

1. Carry out a simple analysis of what each sku delivers to the business. This could be volume and margin or profit or whatever your key driver.

2. Categorise the skus A, B, C, D where A skus are vital to the business and must always be available. B skus may be high volume but low contributors while C skus may be low volume but high value. D skus should receive significantly less focus and be subject to delisting if they are destroying value – some certainly will. What would you rather have out of stock, A or D?

3. Through cross-functional focus within the S&OP framework, concentrate on A skus and towards achievement of a decent level of accuracy. If you are going to have debate then have debate on what makes a difference.

4. When the A skus are being forecasted and supplied at reasonable accuracy add the important others from the B and C lists – not all of them. With better accuracy maybe some B and C skus can push up to the A list - growth!

5. Refresh your understanding of sku profitability/margin on a quarterly basis to ensure you are still giving your best attention to the key skus in your business.

These 5 activities within a mutually supportive S&OP will lead to greater market understanding by all departments and leave you Mr. CEO, with an organisation that collectively wants to succeed rather than indulge in silo wars.

Image courtesy of Salvatore Vuono at freedigitalphotos.net

Tags: FMCG, Dave Jordan, CEO, Pharma, S&OP, Forecasting & Demand Planning, Sales

Multi-Sector Integrated Business Planning/S&OP Summit: Going?

Posted by Dave Jordan on Thu, Mar 13, 2014

How many times do you find this happening? Someone asks you if you saw that blockbuster film last week or if you saw the new comedy series starring Rowan Atkinson or even if you saw the football match last night where Manchester United finally played like Champions and won a game?  You are right; the last one really is fiction in the context of 2013/14 and Mr. Moyes.

Enchange at IBP Summit 10-11 April 2014With the explosion in social media and internet accessibility you would think that everybody is always aware about what is happening in their locality, country or around the globe. If you think back before mobile phones and the internet it seems like there was less news, fewer disasters, fewer crises and human strife. My view is that there is little difference in global goings-on with the possible exception of financial crises due to some modern-day incompetence and greed.

In the context of business planning do you know about the Integrated Business Planning Summit coming up in London on 10, 11th April?  You do not want to find out about it post event as the next one will not be around for another 12 months or so. Whether you are interested in S&OP, IBP or even simple planning on a spreadsheet you should get yourself along so start planning now!

So who will be there? The speaker list is impressive and currently includes:

Tesco – a UK based retailer that has grown from Jack Cohen’s barrow in Hackney through “pile it high, sell it cheap” to be the second largest retailer in the world with over 3000 stores in the UK alone. Now it is only profit that is piled high.

Unilever – not many years have passed since Unilever did not have a Supply Chain presence on the main board.  In fact, not many years have passed since there were two main boards so how has planning excellence leveraged performance through S&OP and other initiatives?

Barclays – the bank that introduced the world’s first cash machine in Enfield, North London. What would we do without “hole in the wall” cash availability? We are banking on Barclays to deposit some interesting insights and notes on Supply Chain Finance related to planning.

Pizza Hut – the well known fast food outlet started by Dan & Frank Carney that has grown from having one store in Wichita, Kansas to being the world’s largest restaurant company. What slice of planning excellence will you choose to take away?

Lego – from "leg godt", which means "play well” in Danish. Go on, check! At the end of 2013 it was estimated that approximately 560 billion Lego parts have been produced and I am sure around 1 billion of those are in my attic. Hearing about how their planning building-blocks interlock in this business will undoubtedly be constructive.

Enchange Integrated Business PlanningThese are just five contributors from a lengthy list that includes others from Diageo to Osram to the Rainforest Alliance. The full list covers many different sectors with each bringing their own particular expertise and insights to the summit.

Oh, and Enchange will be there as well so that’s all the big names covered.

Check out the IBP Summit website and reserve your place. There is also a “convince your boss” button so go ahead and give it a try.

If I meet anyone there who has read this blog I may even buy them a drink.


2014 image courtesy of Stuart Miles at freedigitalphotos.netfreedigitalphotos.net

Telephone Box image courtesy of James Barker at freedigitalphotos.netfreedigitalphotos.net


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

Supply Chain Recognition: Enchange blog gets an Oscar – sort of!

Posted by Dave Jordan on Tue, Mar 11, 2014

Recognition.  Everyone needs to feel a bit of warmth and appreciation at some stage at home and work or life can be a bit of a drudge. Recognition of an achievement or responsibility can take various forms. At school, recognition as the class Milk Monitor was keenly sought after. (UK readers born after 1971 are thinking if a Milk Monitor was a computer screen launched before Apple Inc got their act together with the Mac.)

What a responsibility and also a position of peer power? As Milk Monitor you were able to ensure you got a milk carton from the bottom of the stack that was still cold rather than a warm one from the top of the pile.  Similarly, you were able to decide who received the expired carton saved from last week and hidden behind a radiator. Would I do that?

While the UK’s honours system is raft with cronyism and political gifting there are always some names fully deserving of an award and the opportunity to meet a member of the British Royal Family at Buckingham Palace. This could be the “Lollipop Man” who has helped children cross a busy street for 25 years or one of the many selfless charity workers who are dedicated to causes that the government should pay for anyway.

A footballer who has scored a hat-trick of goals in a thumping win and is then substituted to loud and warm applause surely deserves that moment in the spotlight. However, this should not apply to Wayne Rooney. A reported GBP300,000 per week for a maximum of 2 matches is outrageous. If we assume a 40 hour week – which is not the case – Wazza is picking up GBP7500 per hour and what’s more, he gets paid whether he plays or not, how badly he performs and even if he is suspended. They way he plays sometimes, makes me think he should be suspended from something!

Enchange Blog voted in top 50 resized 600Anyway, I digress. The theme of this blog is all about recognition and thanks to you, our readers and subscribers; we have had a bit of recognition ourselves. The Enchange blog has been voted one of the top 5O Supply Chain blogs in the world by SupplychainOpz.com – click on this link to see the full list.

I really do not mind if the Enchange blog was rated number 1 or 50 but the simple fact it has been recognised as a source of good Supply Chain stuff is great news. So a big thank you to all our readers, subscribers and referrers and we look forward to keeping you trained and entertained on all things Supply Chain.

I think it is time for a celebratory glass of something. No, not milk.

Image courtesy of pixtawan at freedigitalphotos.net

Tags: Brewing & Beverages, FMCG, Dave Jordan, Telecoms, Pharma, Supply Chain

FMCG Drinks and disastrous extended Supply Chain overstocking

Posted by Dave Jordan on Wed, Jan 29, 2014

I don’t know why I looked this up now but I did. Do you remember the Icelandic volcano that erupted in 2010 and caused so much havoc to supply chains in and around Europe? Most people do as they were affected in some way either in professional or personal life. Outside of Iceland, I expect few people had heard of the location and even fewer could pronounce it – Eyjafjallajökull – well worth 406 points in Scrabble.

Do you know how much ash and other debris was propelled skywards from the Eyjafjallajökull volcano in the first 3 days?  The best estimate indicates a mammoth 140 million cubic metres (180,000,000 cu yards) which erupted at a rate of 75 tonnes per second – thanks Wiki. Think about it for a second or two. That is enormous. Try and picture about 100 pallets of Persil washing powder being propelled into the air every single second for some considerable time and staying airborne!

If matter cannot be created or destroyed, what replaced this? Is Iceland actually sitting on a structure that looks like a giant Malteser chocolate which may give way at any time? I think we should be told. Mastermind’s Magnus Magnusson would have told us wout a hint of a "pass".

And now to my supply chain related volcano comparison. On a much less destructive level the month, quarter, year-end sales push in FMCG, Pharma and Brewing places unwanted stock in the market which disrupts supply chains and can severely destabilise companies. Don't say it doe snot happen; you know it does. When so much unwanted stock explodes into the market place – usually the last few days of the month - this causes a number of related problems and not least, forecast accuracy collapse:

  1. The Producer may believe the demand signal is healthy and gears up for replenishment stock which locks up resources, cash and physical space.
  2. Distributor/Key Accounts cash flow and warehouses are blocked as nobody actually wants the product that is available.
  3. Supply of product consumers actually want is delayed as Producers make the wrong stuff or run out of storage space.
  4. Stock will expire and you will suffer write off.
  5. Yet, sales people get their bonuses despite causing internal chaos……..

Like my Icelandic Malteser proposition, at the period end you have thrown so much unwanted stuff into the market that nobody needs or wants and it hangs around for ages. What is left behind is uncertainty and certainly not very pleasant.

You can only get away with a “head in sand/ash”  push strategy for so long until your business is paralysed and badly damaged and this can take years from which to recover. Next time you are asked to approve a last minute loading don’t say “pass” say “no”.

 

 

SKU Complexity Ebook


Tags: Customer service, SKU, Brewing & Beverages, FMCG, Dave Jordan, Pharma, Distribution, Inventory Management & Stock Control