With constant change in consumer habits, it is difficult to accurately forecast demand and ensure having the right product at the right time and place. The general trend is to ensure that enough replenishment inventory is within reach (backroom or distribution centre) to react to constant sporadic change is consumption trend. However, the downside to this is the high cost of write-offs that come with it which therefore trades offs on the generated revenue and profits. This does not mean that implemented demand planning tools within the retail sector is therefore unproductive. It should be noted that the consequences of not implementing a Sales and Operations Planning system would do more harm than good. Within the retail sector Sales and Operations Planning implementation should be integrated with strong supplier collaborations. This therefore means that organisational procurement strategy must be strongly aligned and employ a more strategic supplier collaborations.

Supply Chain Consulting


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