039. Managing Your Inventory and Supply Chain in a Chaotic Business World
Presenter: Jon Schreibfeder
Level of Complexity: Intermediate
8:00 AM - 11:30 AM
Distributors face a multitude of business challenges today. Sales of some products is skyrocketing while demand for other products is plummeting. Frequently vendors cannot ship needed inventory in a timely manner. Transportation issues are resulting in delays in receiving replenishment shipments. Often you need to decide how much to buy before a vendor price increase and evaluate alternate sources of supply. In addition to these replenishment issues, there are many challenges in maintaining a safe work environment while filling customer orders in a timely manner. In fact, composition of these orders may have significantly changed with the boom of e-commerce. In this session we will discuss what distributors can do to address these challenges, how to evaluate possible supply alternatives, and adjust replenishment policies and procedures during the gradual recovery from the pandemic. Most important of all we will discuss how to prepare for future, unknown, marketplace disruptions.
Experience shows that most distributors are leaving at least two percentage points of gross trading margin on the table. This translates into 2% of total sales. Many companies can ultimately achieve more. The improvement is attainable fairly quickly and has proven to be sustainable. Two percent is the difference between mediocre profit results and stellar performance!