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Forecasting & Stock Replenishment
By improving your forecast reliability and managing supplier lead-time variability, we’ll help your business to prevent stock-outs and increase customer satisfaction. Our expert forecasting and replenishment consultants will ensure you work with optimal stock levels, boosting operational efficiency and financial performance.
About our service
Forecasting and managing stock effectively
Our demand forecasting and stock replenishment services ensure your inventory levels are optimised to meet customer demand. By enhancing forecast accuracy and managing supplier lead-time variability, we help you avoid stock-outs and excess inventory. This minimises financial losses due to write-offs and shrinkage, ensuring efficient operations and improved customer satisfaction.
Our tailored solutions support your purchasing and inventory management teams in achieving optimal performance and cost-effectiveness.
Collaborative forecasting and replenishment
We can also help your business to introduce collaborative forecasting and replenishment. This is a supply chain strategy where partners, such as manufacturers, suppliers, and retailers, share data and insights to improve demand forecasting and inventory management.
By working together, they can create more accurate demand forecasts, optimise stock levels, and synchronise replenishment schedules. This collaboration leads to reduced inventory costs, fewer stockouts, improved order fulfilment, and enhanced customer satisfaction. It fosters stronger relationships between partners and increases the overall efficiency and responsiveness of the supply chain.
Process & considerations
The Hatmill approach to forecasting & stock replenishment
Our process is collaborative by nature and we bring together the best suppliers to streamline your forecasting and replenishment capabilities. Here’s what our process looks like:
Data collection
We’ll begin by gathering historical sales data, market trends, and other relevant information to form the foundation for accurate demand forecasting.
Demand forecasting
We’ll then analyse the collected data using statistical methods and advanced analytics to predict future demand. This step helps in understanding seasonal trends and market fluctuations.
Supplier lead-time analysis
Then we’ll assess supplier performance and lead times to ensure timely stock replenishment. Understanding variability in supplier lead times is crucial for maintaining optimal inventory levels.
Inventory optimisation
Optimal stock levels will then be calculated by balancing demand forecasts with supplier lead times. This step aims to minimise stock-outs and excess inventory.
Replenishment planning
We’ll then develop a replenishment strategy that aligns with demand forecasts and lead-time analysis. This involves setting reorder points and safety stock levels to ensure continuous product availability.
Monitoring & adjustment
We’ll continuously monitor inventory performance and adjust forecasts and replenishment plans as needed. Regular review ensures that your system adapts to changing market conditions and maintains efficiency.
“Throughout our time working with Hatmill, I have remained impressed with the organisation, focus and tenacity of the team, and they have been instrumental in helping our organisation reach some critical decision points. The team are engaging, personable and a pleasure to work with.”
– Phil Wright, Head of Logistics, Greggs
Review inventory profile
We can review your inventory profile and design options to segment SKU’s by the characteristics that will help transform your supply chain and inventory performance. We capture measures such as hit frequency, cost of goods sold, customer segmentation and marketing importance. Each ABC classification can then have unique service level factors to enhance availability on fast-moving SKUs, and minimise risk on the slower, more volatile items.
FAQs
What should you know?
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How can an effective forecasting and stock replenishment system improve a supply chain?
An effective forecasting and stock replenishment system improves a supply chain by ensuring optimal inventory levels, reducing stock-outs and excess stock. It enhances order accuracy and fulfilment speed, leading to higher customer satisfaction. By accurately predicting demand and managing supplier lead times, it minimises costs associated with overstocking and write-offs. Additionally, it streamlines operations, increases efficiency, and enables better resource allocation, supporting overall supply chain agility and responsiveness to market changes.
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What are the benefits of collaborative forecasting and replenishment?
Collaborative forecasting and stock replenishment offers numerous benefits, including improved accuracy in demand predictions through shared insights and data. This leads to optimised inventory levels, reducing stockouts and excess inventory. Enhanced communication between supply chain partners fosters stronger relationships and better alignment of goals. It also increases responsiveness to market changes, enabling quicker adjustments to production and inventory plans. Overall, collaborative efforts streamline operations, reduce costs, and improve customer satisfaction by ensuring products are available when and where they are needed.
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