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Inventory Management: Do You Have One of These?
In a current project, a parts-supplier asked me to help them
with an inventory management problem. I asked if the end-customer was ever
surprised when they received the shipment and found that they
didn't receive what they had ordered. Their response was "No,
they're surprised when the do receive what they
ordered."
A quantitative analysis and site inspection revealed deficiencies in replenishment techniques,
picking strategies, and physical counting. The most significant
contributor to order error turned out to be a confusing, poorly
organized catalog. The end-customer could not correctly identify
parts from the catalog.
What the end-customer really needed was the friendly
type of counter service you get at a hardware store. The
customer can walk in and ask "Do you have one of these?"
The challenge is to grow the distribution model, control costs, and provide this
level of hometown service
In this project, we're using technology to provide the hometown
service model without having to maintain a physical presence. In
the next issue, we'll discuss one of the key elements to the
solution: replacement sample tracking.
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