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LETS GET DOWN TO BUSINESS.

Question :
Hi, Ive found that post lockdown business started with a boom but has slowed down a tad so I’m not sure how much stock I should order in, in the next few months? Cheers

Question submitted 23/06/20 @ 12:47pm
Industry: Manufacturing
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  • Hey Dave – this is a super good question, a thought would be to look back to see if that helps – take a look at the period pre covid
    – during covid
    – post covid

    see if you can see any patterns or trends in each of those three periods.

    Maybe it will give you some insights as to how much – over-stocking is not good, and under-stocking is worse!

    You know that – I wish I had more insight!

    Hi Dave

    this is a function of the demand, post Covid there was pent up demand, this has probably settled down somewhat to give you a more accurate view of the forward demand. The trick is to set a safety tock level which covers your delivery lead time and set the demand level to meet or be just below demand. As things stabilise you lower the safety stock level. This of course varies by the nature of the product as well, but hopefully this makes sense. Happy to chat further if you want to talk through in more detail 0275349258

    Also try and contact your regular customers and see if you can agree forward orders direct with them. They will also be struggling to forecast and so maybe you can agree favourable pricing terms to guarantee them 60-80% of their orders which will give you more certainty for future demand.

    Staying in touch with your core customers is a very good way of ensuring you are on top of any changes which are happening in their businesses which could also impact your own. This gives you more visibility as a caring supplier but also it’s market research from the front line, directly relevant to your business.

    Set up a schedule of fortnightly calls by your sales team and see what they report back.

    Rebecca Caroe

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