Page 8 - Newcom

SUPPLY CHAIN SCAN
hv em'dst'dt oiatleiht ct.ctd in o ti ,
Mccainls Hutchmon a e r aine ‘ea y a appr x m e y g per en ex ep ur g pr mo ons
where they consistently hit 40 percent.

" The pair explained there has been no improvement in that figure because
organizations continue engaging in escalating forecasting. “Everyone is forecast-
ing," said Doherty. "When every level is forecasting, everyone forecasts wrong

\ ‘ and everyone buffers." Their solution is to dispense with multiple forecasts (store
, l. _ ___ l-._ level, chain level, regional distribution level. manufacturer level) and stick with
- ‘ ‘ l ’ — - . - . . . . .
’ i __ a single forecast that is done at the retail level and is based strictly on pomt—of—
’ » ”' '4 . I ' , ' sale data. They call the solution llowcasting.
,-L ___7 ,4 _ To watch an interview MMé~D conducted with Doherty and Martin at the
i V 5”“ [ll 5 Ow" ‘ conference. see http://tinyurl.corn/flowcasting.
I
‘I
- ‘ “ V Evolution
H Douglas Harrison. chief operating officer of the Day Sr Ross Transport Group. looked
Coritiniiedfrom page 7 at how external changes and pressures (including consolidation in the market,
a new product in the UK. it changed its approach demographics leading to driver shortages and business owners hitting retirement
completely. McCain sourced locally. built production age. and the growing 4PL trend) affect transportation companies. and also how
lines with rapid expansion capabilities. and did internal changes can improve the way transportation businesses operate.
regional mini—launches supported by localadvertising He told the audience Day 8: Ross is finding business relationships are being
and couponing programs. established using different tools. “We're seeing pronounced decline in RFPs.
Although sales again exploded, this time McCain We're seeing far more involvement in RFls (requests for information) up front,
was able to keep up. “So far. and we’ve been at this and then narrowing the scope down to a few players."
for about a year. we've been able to handle the demand He added that the growth in RFls has led to softer capabilities being played up
for this product without going on allocation and while more than they have in the past. He's hearing more and more questions along the
maintaining shelf presence in all the region it's sold. lines of “What are you doing from a staffing standpoint? What are your human
And sales are continuing to grow.” resources practices? Where are you investing capital in the business? What do your
financials look like? What are you doing in terms of technology development? And
Demand forecasting then using all those as acid tests before moving on to economics.”
Mike Doherty. a partner at Demand Clarity Inc, and He also explained how the company hired outside help to assist it in learning
Andre Martin. vice-president of flowcasting for [DA how to deal with change. "We brought in change consultants across our organiza-
Software Group inc told the audience that despite all tion. We had them challenge us to say what is our service about? How are we going
of the advancements in the last four decades when it to evolve to meet our customers‘ needs and what do we think our customers’ needs
comes to forecasting techniques, there is one impor— are going to be five years from now. 10 years and 15 years from now? Those are
tant number thathasn't changed: retail out—of—stocks challenging statements in a world that is evolving as much as today's world is.”
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From manual and electric pallet trucks -‘I u n - a I your mater a
and slackers. three and tour wheel
electric forv.lil‘ts, and internal combtisticin ‘ W T I ' needs
engine forklifts up to 22,000lbs - every ‘N H
DIECE of equipment we sell is backed by - .
a lirst class warranty. iuiiy SI0C.|<E1CltJartS " ~ ' - .' '_|
del)art.ment. and a dealer network with |l E ‘ ,
factorv trained technicians. ’ | " “' — I . A
Stérke is German for strong‘ and J1 W‘ —
oerfectly describes how we deliver In A l E -. —
dE$lgl1.CUSl(‘)l"nE!I service and value. it ,_ C '— _ - _ '-
ClE5(‘.l‘ll')&F- fill! -".On11V1|lrnt3l'1l lo worker . ,;.;u»: w. v l #2 l‘. .' . .
safety and to our product themsc-|ves.. I l '
each built for years of trouble ' “ ‘C’
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FIND A DEALER NEAR YOU - 1.877.435.4352 - www.starkecanada.com - wwvii.starkeusa.com