Benefits for distribution companies
Wholesalers know that owning a large inventory means high investments level. In industries where cash is relatively limited resource high stock levels of some goods will always be at the expense of other stocks. So wholesalers face a constant challenge: to hold a stock of goods demanded in proper quantities. Otherwise they risk freezing the cash, or lose the retail orders.
During the conference speakers will present how to manage warehouse inventory to ensure maximum security of supply: allow the addition in short time and fulfill the orders accurately.
Presentations on distribution will be given by people who implemented TOC principles in large supply chains. Also, wholesalers will share their own experience in stock dynamic buffer management and explore in details how they achieved impressive results.
There will be presented solutions for these problems in the distribution business at the conference:
- Over-stock of many goods;
- Stock-out of highly demanded goods;
- Vanishing of flexibility in clients changing demands fulfillment;
- Too high level of investment in stock while lost sales due to out of stock at the same time;
- Too many urgent, not-planned shipments among warehouses;
- Too large amounts of goods return;
- Retailers receive too many by half filled orders.
During the conference it will be demonstrated how TOC implementations by some wholesalers helped achieve great outcome:
- sales increase (usually 20%);
- improve inventory turns (usually more then twice);
- cut down shipments among regional warehouses (usually to the zero-point);
- decreased inventory of morally outdated items in the warehouses (usually more than twice);
- maintaining the same OE;
- improved greatly relationships with clients and suppliers.
The conference will take place in Vilnius on April 30, 2013.