Failing to anticipate supply and demand
Sales planning is a key driver in the material (stock) replenishment process. There are many planning tools used to project sales, but when the projections do not line up with actual sales, warehouse inventories are affected. It is important to manage regular up-to-date inventory versus sales position so that the selling process can be optimized. Sales teams review estimated sales and inventory positions but many times find that the actual numbers are not available as needed.
Common problems from this process
- Point-in-time data quickly becomes obsolete
- Lack of timely fact-based data to be used in production or purchasing adjustments
- Incorrect data used in decision making
- Conflicting objectives between departments – sales goals and inventory management and turns goals
- Unclear fiscal responsibility
- Inefficient warehouse operations driven by excessive and slow-moving inventory
- Missed sales targets
- Lengthy S&OP meetings
- Excessive inventory or lack of inventory
- Production or purchasing of inventory out of sync with revised sales targets
How HULFT can help
HULFT Integrate can bridge the gap between Sales CRM and ERP systems, providing a combined view of the current inventory position, current quarter sales progress, and next quarter sales forecasting. This view can assist sales teams in making push and discount decisions, and provide feedback to manufacturing or procurement. This can enable production and purchasing adjustments, preventing over- or under- stocking of raw materials and finished goods.