Kormac Insights
Flexible Replenishment Models
For Unpredictable Demand Across Wide SKU Base
Like dancers, the best supply chain models are flexible and adaptive. That’s especially true for industries facing unpredictable demand across a wide variety of SKUs and customers, such as distributors, construction and project-based suppliers, automotive aftermarket firms, industrial equipment manufacturers, custom manufacturers, and more. While traditional ERP/MRP-driven replenishment works for stable, high-volume products, specialized distributors and project-based sectors require a more tailored approach.
Flexible replenishment models — leveraging historical data, real-time analytics, and demand variability — enable companies to maintain service levels without tying up working capital in excess inventory. By segmenting SKUs, prioritizing inventory based on customer requirements, and rationalizing across multiple warehouses (e.g., “hub and spoke”), organizations can respond dynamically to market shifts and customer needs.
We help our client partners build tailored, data-driven replenishment processes that boost both efficiency and customer satisfaction. Here are some indicators that often reveal the need for greater replenishment flexibility:
• Inventory turns are consistently below industry standards
• OTIF (On Time In Full) service levels are missing the mark
• Production delays are undermining customer satisfaction
• Stockouts or performance issues are resulting in lost sales
A more adaptive, flexible replenishment model will:
• Incorporate demand variability and customer segmentation
• Use predictive analytics to adjust safety stock in real time
• Rationalize inventory across the network for maximum efficiency
• Deliver on your brand promise, every time
Curious how a more flexible replenishment strategy could transform your supply chain? Let’s talk.