- Rishi Varma

Build up of inventory in the supply chain

Build up is up-stream

Germinates from uncertainty of supply

Large fluctuation in inventories across the system

CoQ impact of ageing inventory

Order backlog Supplier doesn’t take new order, tries to

reduce old (sometimes irrelevant) inventory Communication and coordination gap Delay in material & data flow Large batch sizes Varying prices Shortage gaming Demand forecast inaccuracies Free return policy

Full truck load economics

Outsource to 3PL

Assorted truckloads

Small order / batch sizes

Reduce lead time & DDP

EDLP - every day lowest prices

PoS data to counter demand forecast inefficiencies

VMI

Replenishment (Trigger point, MoQ)

Prohibit / limit free return policy