THE OPTIMAL ROLE OF OPTIMAL INVENTORY IN SUPPLY CHAINS AND BUSINESS
| Slide Number 1 | 1 |
| Section 1PriceSmart vs Domestic Warehouse Club Supply Chain Configurations | 2 |
| Introduce the optimal role of inventory in supply chains and business.Explain and illustrate high level inventory tradeoffs.Illustrate the effect of successful inventory management strategies on overall supply chain and business performance.Illustrate inventory optimization case examples for best-in-class supply chains. | 3 |
| What is a Supply Chain?Inventory in PerspectiveThe Bullwhip EffectThe RightChain™ Inventory EffectRightChain™ Inventory Use Cases | 4 |
| Logistics is the flow of material, information, and money between consumers and suppliers. Accordingly, there is physical logistics, digital logistics, and fiscal logistics.The supply chain for a given enterprise is the set of enterprises, systems, facilities, vehicles, and transportation infrastructure connecting the suppliers’ suppliers to the customers’ customers for that specific enterprise.To use a sports analogy, the supply chain is the stadium and logistics is the game!Supply chain flow is optimized when material, information, and money flow simultaneously, in real time, and without paper. | 5 |
| Supply chain logistics is a field full of difficult and complex tradeoffs. The root word for logistics is logic, meaning based on facts, clear rational thought, and sensible reasoning. The root word for “logic” is “logos”, meaning Word, divine reasoning, or wisdom from God.Optimization is the process identifying an objective function, constraints, and the solution that satisfies the constraints and objective function.The RIGHT answer for each supply chain logistics tradeoff we face will be found using data, optimization, logic, and logos. | 6 |
| Japan: The Land of Lean | 7 |
| Don’t philosophize; OPTIMIZE. | 8 |
| Supply Chain Optimization | 9 |
| From the Wrong Chain to the RightChain™ | 10 |
| Coca-Cola FEMSA Supply Chain | 11 |
| RightChain™ Finance | Supply Chain Inventory Financials | 12 |
| RightChain™ Finance | Supply Chain Inventory Financials Cont’d | 13 |
| Campbell’s Soup BullwhipPoor Demand Signal ProcessingBatching for Economies of ScalePrice Fluctuations and PromotionsShortage GamingBullwhip Counter Attacks | 14 |
| The Bullwhip EffectIncreasing Variability of Order Sizes in the Supply Chain | 15 |
| What Causes the Bullwhip Effect? | 16 |
| Slide Number 17 | 17 |
| Inventory: What’s the problem? PowerPoint Template | 18 |
| Section 1PriceSmart vs Domestic Warehouse Club Supply Chain Configurations | 19 |
| RightChain™ Inventory | Seven Steps to Optimal InventoryBased on Dr. Frazelle’s Inventory Strategy book published by McGraw-Hill, RightChain’s Inventory Optimization methodology and cloud-based SaaS artificial intelligence maximizes gross margin, gross margin percent, gross margin return on inventory, and inventory value added at the SKU, category, supply chain, and business unit level. Safety stock, lot size, pipeline, and build inventory are optimized at the SKU level. | 20 |
| Section 1PriceSmart vs Domestic Warehouse Club Supply Chain Configurations | 21 |
| Slide Number 22 | 22 |
| RightChain™ Inventory Maturity Model | 23 |
| Honda Service PartsDell PCsCoca-Cola ConsolidatedU. S. Army MaintenanceDisneyP&GColgateCarrier | 24 |
| Honda RightChain™ Inventory Performance Results | 25 |
| Slide Number 26 | 26 |
| Merge-in-Transit | 27 |
| RightChain™ Inventory Optimization for Coca-Cola Consolidated | 28 |
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