Presentation by Rishi Varma for OSM IIM Kashipur Session

1. - Rishi Varma

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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

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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

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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