Eric Jensen shares his thoughts on how customers value distribution based on a survey of wholesale distributors. The results place inventory availability nearly as important as relationships. Technical support ranked third, while delivery time and price ranked fourth and fifth, respectively.
Source: Industrial Distribution, August 12, 2016.
If you are a distributor, while your value may be based on your relationships with your customers, flourishing those relationships could be dependent on having optimal levels of inventory to satisfy customer demand.
INSIGHTS: Jensen emphasizes forecasting as one of the more important elements of inventory management. Whether you work for a distributor, a retailer, a vet clinic or a manufacturer, managing the replenishment cycle is critical to having product on hand at the right time. Zero on hand is not an acceptable reorder point in managing key SKUs. His four areas of focus are spot-on:
- Right Facts and Right Forecast
- Decide the right level of stock
- Choose the right time to re-order
- Have some “safety stock” to protect against shortages and unexpected events