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VMI vs. Spreadsheets: Keeping up with Change
As typewriters gave way to computers, spreadsheets are giving way to sophisticated automated systems that use 852 data to make accurate forecasts, build truck loads and manage inventory planning faster and better than can be done manually. The reasons to automate the VMI process are varied across industries, but some key motivators seem to ring true for all...
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Of Pizza and Planning: A Philosophic Approach to Supply Chains
Out-of-stocks keep retailers and suppliers awake at night, and send empty-handed customers scrambling toward store exits. Of course, in the world of consumer products more can go wrong than running out – overestimating demand, underestimating shrink, or dealing with labor issues, for example. But when it comes to keeping customers happy and bottom lines fat, nothing is as potentially disastrous as an out-of-stock...
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Secrets to Developing a Successful Scan Based Trading Program
During the first half of 2004, Kurt Salmon Associates (KSA) conducted research on Scan Based Trading (SBT) by interviewing industry-leading retailers and suppliers currently active in SBT initiatives. For many of these retailers, KSA found 20% to 30% of their inventory will be on SBT by year-end 2005. Suppliers are already participating in high numbers, as the leaders confirmed 20% to 40% of their sales are conducted via SBT, and that number is increasing
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Private Label: A Store Brand Primer
Store brands now account for one of every five items sold in U.S. supermarkets, drug chains and mass merchandisers. They represent more than $65 billion of current business at retail and are achieving new levels of growth every year. Over a four-year period, private label dollar volume in the supermarket channel is up $2.3 billion, or +5.4%. In drug chains, store brands gained +6.7% in dollar volume, almost double the rate of growth for national brands...
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Taking Sales & Operations Planning to the Next Level
Sales & Operations Planning (S&OP) is a formal business planning process owned by executives and senior management. The strategic objective of the S&OP process is to ensure that operating plans across the enterprise are aligned with, and support, the business strategy in the most effective and profitable manner.

Tactically, S&OP usually focuses on ensuring demand and supply are kept in balance and customer service targets are maintained as demand and the availability of capacity and critical resources changes. A key goal of S&OP is to create realistic, feasible plans...
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Demand-Driven Management for Consumer Products Companies
Consumer Products (CP) companies face a consolidation of major customers, unpredictable consumers, tough competitors, and an unrelenting focus on cost containment. CP leaders recognize that they must better synchronize plans and business processes or risk their market position. This is compelling them to adopt demand-driven practices...
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Private Label Manufacturing: A Challenging Growth Market
Private Label products form a significant and growing portion of the consumer products market. Retailers are partnering up with manufacturers to create store brands or, for smaller retailers, to sell a “generic” a private label brand to gain strategic market advantages. According to the Private Label Manufacturers’ Association (PLMA), one of five items sold in supermarkets, drug chains and mass merchandisers in the US are now store brand. Selling private label goods can increase margin, add differentiation of the retailer and its brand, improve customer loyalty, and keep the retailer focused on its core competence...
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