With so many SKUs to manage, and some with high minimum order quantities (MOQ), it is small wonder that companies will buy and hold inventory in bulk, especially when there could be full container load savings.
However, if the Sales Terms, or International Commercial (INCO) Terms agreed is such that the supplier/principal pays for freight, then there could be opportunity to buy more often, and less at a time, to reduce inventory and space requirement.
How do you know? Just plot a graph showing high MOQ/Average demand during leadtimes on the left, and the order frequency in the right for products with CNF and beyond. Do a quick sanity check to compare if high MOQ/Average demand during leadtime translates to lower number of orders (unless it is planned orders). Those products that you see that is ordered infrequently are opportunities and savings.
No comments:
Post a Comment