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The goal of any distribution system is to have the right goods in the right place at the right time in the right quantity. The characteristic of a distribution system is that the consumption points are far, in distance and time, from the supply point.

Typical problems faced by many distribution systems are:

Selling outlets frequently run out of product
Selling outlets frequently experience excess inventories of some product
Discounting is used to move excess inventory
System inventories are high and stock turns are low
Inventory ageing causes spoilage and sub-standard product performance
New product launches are delayed while old inventory is cleared
Plants and warehouses are frequently forced to expedite product
Forecasting (also known as the search for a better crystal ball) does not work because:
Forecasting demand is as complex and unpredictable as forecasting the weather
Who will buy what, from which outlet, on any given day, is impossible to know
As the forecast reaches further and further into the future, its accuracy diminishes
  The Replenishment Solution

TOCCA’s Replenishment solution deals with the issues of distribution by decreasing inventories while maintaining or even improving service levels. The key to the solution lies in understanding the role that variability plays throughout the distribution system while maintaining focus on the weakest link. Dismantling assumptions about the costs and benefits of traditional methods provides the lever to improved performance.

  Developed by Reason8

The TOC Centre of Australia

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