How to Create a Replenishment Schedule That Works

Because inventory causes exponential pain with multiple warehouses... This infographics shows how to manage inventory in this context: ➡️ Centralize Inventory Visibility ↳ Issue: not knowing inventory levels across locations can lead to overstock in one warehouse and stockouts in another ↳ Action: Implement an inventory management system/ ERP that shows real-time inventory positions for all warehouses in one snapshot ➡️ Classify Products and Prioritize ↳ Why: Not all SKUs deserve the same treatment; some are high-value, others are seasonal ↳ Action: Use ABC analysis to rank products by focusing on A-items for tighter control ➡️ Define Replenishment Rules by Warehouse ↳ Why: Different warehouses cater to different regions or demand patterns. One-size-fits-all reorder points (ROP) won’t cut it ↳ Action: Tailor ROP, safety stock, and min-max levels by location. Consider lead times from central distribution centers or suppliers for each site ➡️ Breakdown Forecast by Warehouse ↳ Why: Each warehouse faces unique market dynamics ↳ Action: Generate warehouse-level forecasts, combining local sales trends with broader S&OP inputs ➡️ Plan Transfers Strategically ↳ Why: Sometimes it’s of lower cost or faster to transfer stock than reordering from suppliers ↳ Action: Set up a transfer framework; regularly review surplus vs. deficit at each location. Automate triggers for transfer orders when it’s cost-effective. ➡️ Monitor KPIs Proactively ↳ Why: Multi-warehouse complexity can hide inefficiencies when not tracking the right metrics ↳ Action: Track fill rate, inventory turnover, stock aging, and transfer costs at each site. ➡️ Plan Direct Dispatches & Save Costs ↳ Why: Dispatch directly from the plant to save logistics costs ↳ Action: Prepare daily dispatch plans targeting direct replenishment from the plant and use these warehouses for milk runs for distributors Any others to add?

Ever struggle with unpredictable demand and supply constraints? 🤔 I believe Sequential Decision Analytics (SDA) can make a real difference. 📦 Scenario: You’re managing inventory for multiple products. Traditional methods rely on static plans based on fixed forecasts. But what happens when demand spikes unexpectedly or a supplier delays shipments? 🔍 SDA Approach: Instead of building one rigid plan, you create a sequence of decisions that adapt over time. 1️⃣ Capture the State: Gather everything you know—current inventory, pending orders, supplier reliability. 2️⃣ Decision Policy: Decide how much to reorder, whether to reallocate stock, or adjust lead times. This policy doesn’t just react to what’s happening now; it anticipates future changes. 3️⃣ Sequential Planning: Plan each step with the long-term goal in mind. Adjust your strategy as new data arrives, like shifts in demand or supply issues. It’s not about real-time reactions but about making informed, sequential choices. 🔄 Learning and Adaptation: Refine your policy as you learn. If a supplier is consistently late, factor that into future decisions, so your plan gets better with each iteration. 🎯 Objective: Optimize long-term profitability and service levels, not just by minimizing cost in a static model but by balancing risks like stockouts and overstock over time. With SDA, you're not just guessing or reacting; you’re building a resilient, adaptive strategy for your supply chain. What are your thoughts on this framework and approach? 🤔 #OperationsResearch #SupplyChain #InventoryOptimization #SequentialDecisionAnalytics

Managing inventory on Amazon doesn’t have to be complicated but having a simple and effective reporting system is crucial to ensure you stay in stock and avoid unnecessary costs. 💯 For Amazon-focused businesses and agencies, the emphasis is on optimizing inventory already in Amazon’s fulfillment centers (FBA) and ensuring the right products are sent in at the right time. 🔑 Here are three key elements every inventory management system should include: 𝟏. 𝐄𝐬𝐭𝐢𝐦𝐚𝐭𝐞𝐝 𝐑𝐞𝐨𝐫𝐝𝐞𝐫 𝐃𝐚𝐭𝐞𝐬 The cornerstone of any good inventory system is understanding when to reorder. This requires tracking: ▪️ Current Inventory Levels: How much stock is already in Amazon FBA. ▪️Sales Velocity: The rate at which your product is selling on Amazon. ▪️Transfer Times: How long it takes for inventory to ship from your warehouse to Amazon’s fulfillment centers. By combining these data points, you can calculate an estimated reorder date and ensure timely replenishments. This avoids costly out-of-stock situations that can hurt sales and rankings. 𝟐. 𝐓𝐢𝐞𝐫𝐞𝐝 𝐏𝐫𝐨𝐝𝐮𝐜𝐭 𝐂𝐚𝐭𝐚𝐥𝐨𝐠 𝐏𝐫𝐢𝐨𝐫𝐢𝐭𝐢𝐳𝐚𝐭𝐢𝐨𝐧 Not all ASINs are created equal. To optimize inventory management, you should categorize your products into tiers: ▪️A-Tier ASINs: Products contributing 5% or more of total sales. These are your top performers and must stay in stock at all times. ▪️B-Tier ASINs: Products contributing 1-5% of total sales. Important but slightly less critical—replenish as needed. ▪️C-Tier ASINs: Products contributing less than 1% of total sales. These are your “nice to have” items; prioritize them last if space or resources are limited. This tiering system ensures you’re focusing on what matters most, keeping the business afloat by prioritizing high-impact products. 𝟑. 𝐎𝐯𝐞𝐫𝐬𝐭𝐨𝐜𝐤 𝐚𝐧𝐝 𝐀𝐠𝐞𝐝 𝐈𝐧𝐯𝐞𝐧𝐭𝐨𝐫𝐲 𝐌𝐨𝐧𝐢𝐭𝐨𝐫𝐢𝐧𝐠 Overstocked or slow-moving products can quietly drain profitability due to Amazon’s long-term storage fees. To manage this: ▪️Regularly analyze aged inventory reports to identify items sitting for too long. ▪️Consider running removal orders to clear excess stock and reduce storage costs. ▪️Use this data to refine your ordering process and avoid overstocking in the future. #Amazon #inventory #ecommerce #sales #revenue