Demand Planning and Inventory Optimization

Management Consulting


 Direct Selling


Develop and implement a demand plan that extends to an 18 month period as well as procedural all related activities


The client had been experiencing stock-outs of key products while having excess stock of slow-moving items. Engagement with suppliers and optimizing batch sizes to meet specific demand enabled the stabilization of the demand planning, inventory control and cost reduction of specific products. A demand planning tool was created which factored into account lead times and anticipated demand, which triggered order placement.


  • 18-month rolling sales forecast for standard and promotional items in relation to inventory on hand, sales and receipts
  • Optimized ordering (Economic Order Quantity) resulting in R1m saving and increased service levels
  • Safety stock and stocking policy defined for each category of product
  • Optimization of Working Capital in terms of expediting/de-expediting purchase orders
  • Implementing distribution from a central warehouse to regional locations
  • Facilitation of monthly Supplier meeting

Leave a Reply

Your email address will not be published.