TFD ... OUR Forecasting and Replenishment
Independent research has shown that the third most important reason for a customer showing loyalty towards a wholesaler or retailer is stock availability or “Always in Stock”.
In light of this, TFD has established a specialised team of Replenishment Controllers that monitor Customer’s stock levels, to ensure continual stock availability through forecasting methods.
Retailers can be sure that the manufacturers’ stock will always be on their shelves. Manufacturers can be confident that TFD will continually monitor stock levels to meet “Just in Time” goals, rather than “Long Before Time” or “Out of Stock” disasters.
For the benefit of both the Customer and retailer or wholesaler, it is TFD’s objective not to keep stock in its warehouse for longer than necessary, based on Activity Based Cost Drivers.
The technological enabler
TFD uses Optimiza, a sophisticated, specialised stock optimisation system to forecast and replenish stock on behalf of the Customers. The programme is utilised by TFD’s Replenishment Controllers to achieve optimal stock availability.
TFD’s objective is to achieve in excess of 95% service levels to trade. Optimiza assists to ensure that stock is in the right place at the right time - and in the right volumes. The programme calculates the what, when and where of stock requirements.
These calculations are based on forecasts of anticipated and previous sales as recorded by the retailer or wholesaler and the Customer’s sales and marketing functions.
Replenishment through Optimiza achieves the following:
- Stock optimisation
- Product classification and inventory profile analysis
- Identification and management of slow-moving and discontinued lines
- Computerised forecasting and forward planning of demand for production purposes