Navigating the dynamic challenges of supply and demand in today’s business landscape is no small feat. Under the leadership of Jenny Patzlaff, our virtual Sales & Operations Planning (S&OP) Special Interest Group convened on June 11th to explore insights and strategies for optimizing inventory management.
Jenny illustrated the dual risks of inadequate and excess inventory using a gallon of milk analogy: insufficient stock leads to unmet customer needs (no cereal with no milk), while surplus often results in waste (spoilage and obsolescence). She also highlighted the additional costs associated with urgent restocking from more expensive suppliers, such as DoorDash.
Tim Ziarnik, Senior Director at Spectrum Brands and a seasoned expert in Supply Chain and Distribution, offered a compelling analysis of COVID-19’s profound impact on businesses, particularly suppliers. Using a Goldilocks analogy, he traced the journey from inventory shortages at the peak of the pandemic due to supply chain disruptions, to overstock situations as conditions stabilized, ultimately achieving a balanced state.
A pivotal innovation in Tim’s strategy was the restructuring of their planning framework. Traditionally, one inventory manager oversaw all categories holistically. However, they optimized efficiency by assigning a dedicated manager solely focused on Amazon demand, while the remainder of the team managed other areas. This shift facilitated closer collaboration between sales and inventory management, resulting in enhanced operational outcomes.
Tim emphasized the critical role of partnerships in managing supply and demand, especially during peak events like “Prime Day.” Collaborative efforts with Amazon involved detailed discussions on promotional plans and careful assessment of capacity to meet heightened demand, ensuring proactive readiness.
The session progressed to a member spotlight panel moderated by Stu Heil, Systems Manager – Sourcing at Greenheck and John Cavey, Director of Sales/Inventory, Ops Planning at Brunswick Coordination. Each panelist shared their firsthand experiences and expertise in navigating the nuances of inventory management over time.
Following breakout sessions tailored to specific interests, participants reconvened to share key insights. Our breakout room leaders effectively synthesized these discussions, ensuring all attendees gained actionable takeaways. We extend our sincere appreciation to our speakers and participants for their invaluable contributions. The conversations sparked during this event are poised to chart new paths for organizations, facilitating the adoption of essential strategies crucial for sustained success in today’s evolving landscape.
For those who missed the event, you can access the full recording here.