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Inventory hides demand

Inventory. Re-order. Re-order. Re-order. Level. Point. Point. Point. National. Regional. Stockist. Distribution. Distribution. Centre. Centre. Inventory hides demand. Managing the order. (a) Traditional sequential order processing system.

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Inventory hides demand

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  1. Inventory Re-order Re-order Re-order Level Point Point Point National Regional Stockist Distribution Distribution Centre Centre Inventory hides demand

  2. Managing the order (a) Traditional sequential order processing system

  3. (b) Order management system with ‘clustered’ activities Production Scheduling Order Entry Transport Planning Invoicing Credit Control Managing the order

  4. Creating the logistics scorecard Service quality e.g. Perfect order achievement Better Time e.g. End-to-end pipeline time Faster Cost e.g. Cost-to-serve Cheaper Relationships e.g. Customer retention Closer

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