During the next 5 weeks, we will be presenting a series of articles that allow watch brands to better understand the advantages of moving from a “push inventory” to a “pull inventory”.
Push inventory management is the traditional OEM supply chain based on future sales forecasts of 4 to 6 months. This method typically requires production lead times of up to 100 days and usually involves inventories of 6 to 12 months of completed watches.
On the other hand, pull inventory management relies on real-time watch sales to trigger replenishments. The stock on-hand is usually capped at 8 weeks supply and relies on a Just-In-Time supply chain that can reduce lead time to 14 days.
Each of these methods correspond to a specific supply chain strategy and situation. During this mini-series, we will present simulations of inventory models intended to compare the two strategies. Our goal is to help interested watch brands better understand which system is best for them and their supply chains.
In addition, we will be interviewing current users of a pull strategy put in place using FINS, a JIT software solution by Montrichard.
Our goal is to demonstrate the benefits and cost savings of a Just-In-Time supply chain solution over that of the traditional OEM supply chain and help brands navigate the transition to pull inventory management using FINS should they choose to do so.
- Simulation 1 – How a push supply chain operates with linear sales and the impact on the inventory size
- Simulation 2 – How a FINS pull supply chain operates with linear sales and the impact on the inventory size
- Simulation 3 – How a push supply chain reacts to a “Black Friday” peak sales situation and, its impact on inventory
- Simulation 4 – How a pull supply chain reacts to a “Black Friday” peak sales situation and, its impact on inventory
- Simulation 5 – A long term comparison of a Push versus Pull inventory size
other big brands choose to work with us?
With over 20 years of expertise, we are confident that we can meet your watch needs.
