Lokad TV

SUBSCRIBE

May 18, 2022

supply chain in 3 minutes

Pricing strategies in 3 minutes

Prices represent a trade-off between short-term and long-term strategies, profitability and market share as well as levels of cash flow. A company sets its prices with different objectives in mind, such as profitability, cash flow or growth.

May 17, 2022

Prices and stocks optimization at Mister Auto

French car parts distributor Mister Auto has choosen Lokad for both its inventory optimization and its pricing optimization. As the European automotive aftermarket includes hundreds of thousands of part references, stocking all parts at all time isn't economically viable. Moreover, minimal order quantities (MOQs) further complicates the fulfillement of the demand, typically both intermittent and erratic for most parts. Finally, the European automative aftermarket is fiercely competitive, requiring constant pricing readjustments to stay ahead of the competition.

Read More
May 12, 2022

Retail stock allocation with probabilistic forecasts - Lecture 6.1

Supply chain decisions require risk-adjusted economic assessments. Converting probabilistic forecasts into economic assessments is nontrivial and require dedicated tooling. However, the resulting economic prioritization, illustrated by stock allocations, proves itself more powerful than traditional techniques. We start with the retail stock allocation challenge. In a 2-echelon network that includes both a distribution center (DC) and multiple stores, we need to decide how to allocate the stock of the DC to the stores, knowing that all stores compete for the same stock.

Read More

Retail Channel Promotions in 3 minutes

A promotion is an activity where a type of marketing communication is used to inform a target audience of a particular product or service, for example that it now has a discounted price. Companies engage in promotions to boost sales and revenue, but also to disrupt customer behavior in their favor. When a company runs a promotion, communication must put that forward to the target audience to ensure the desired uplift in demand for that product or their store.

Read More

Lean Supply Chains in 3 minutes

What does it mean for a supply chain to be lean? In manufacturing, lean describes the method that maximizes productivity while simultaneously minimizing waste. A lean Supply Chain also aims to eliminate waste through better inventory control and streamlining all supply chain processes, although supply chains are by nature very complex and frequently see conflicting incentives and points of view.

Read More

Shipping Containers in 3 minutes

The global use of containers for transportation has resulted in major cost reductions, boosting supply chain efficiency. One of the container’s key advantages is its global ‘Standardization’ of its dimensions regardless of location. Cargo is shipped in containers that are either exactly the same or a multiple of the standard unit of size.

Read More
Apr 6, 2022

Feedback Loops and Machine Learning in Supply Chain

Advancements in technology, such as machine learning and AI, have provoked the question on how to best apply this technology in order to maximize the supply chain performance. Can machine learning be applied in a way that, by providing it with more and more forecasting data, increasingly better forecasts are being produced through complex feedback loops?

Read More
Mar 31, 2022

Data Aggregation and Forecasting

When it comes to demand forecasting, there is an incredible diversity of methods and levels of data aggregation that are used. Some companies forecast on a daily basis whilst others on weekly, monthly, quarterly or yearly basis. Some forecast at the SKU level whilst others at the category level. How does one choose the right level of data aggregation?

Read More

Cross-docking in 3 minutes

Cross-docking, is a logistics method of having goods enter and exit the facility without ever being put in storage. Whilst this method removes loading and pick up operations from warehousing staff, it does so at the expense of the flexibility offered by having the goods stored at the warehouse. Not holding stock certainly comes with many attractive advantages, but also drawbacks such as worse deals with suppliers and a reduction of service to the customers.

Read More

Time Series for Supply Chain in 3 minutes

Time series are one of the most basic and versatile mathematical tools used in business ​​to support statistical models and consist of a series of data points linked to a particular point in time. Time series are frequently used to model anything from the evolution of a company’s sales, product prices and lead times on a yearly, monthly, daily or even hourly basis.

Read More