{"id":551,"date":"2016-11-22T15:45:12","date_gmt":"2016-11-22T17:45:12","guid":{"rendered":"https:\/\/neogrid.com\/en\/how-to-manage-the-supply-chain-starting-from-the-end-consumer\/"},"modified":"2016-11-22T15:45:12","modified_gmt":"2016-11-22T17:45:12","slug":"how-to-manage-the-supply-chain-starting-from-the-end-consumer","status":"publish","type":"post","link":"https:\/\/neogrid.com\/en\/how-to-manage-the-supply-chain-starting-from-the-end-consumer\/","title":{"rendered":"How to Manage the Supply Chain Starting From the End Consumer"},"content":{"rendered":"

Have you ever stopped to think how residential water distribution can be an example for the supply chain<\/strong>? See this: the company responsible for collecting water (which plays the role of the “industry” in this case) sends their product to the distributor (which would be the “retail”) which, in turn, sells to the end customer. In this case, the water is not pushed from the industry to people’s homes. As people consume water, some more water is sent through. Therefore, would it not be better, rather than to “inflate” the inventory in retail, to time the sending of the products as they are being sold to the end customer, as it happens in water distribution?<\/p>\n

This reasoning makes even more sense in the current economic scenario without optimistic prospects in the medium term, which drives companies to think of solutions that enhance operational efficiency<\/strong>, reduce losses<\/strong> and, especially, increase profitability<\/strong>. To this context, the sell-out <\/strong>model<\/a> presents itself as an excellent alternative, since it considers the purchase by the end consumer<\/strong> (reason why it is called sell-out) as the indicator that must guide the behavior of the supply chain<\/strong>.<\/p>\n

Unlike sell-in<\/strong>, which accounts for the sale between inventories (from the industry to the distributor and then to retail) and is the index that currently regulates the relationship between the agents in the retail and industrial sector. This premise adds to the frequent oscillations<\/strong> between lack and excess in stock<\/strong> and does not generate value. After all, “nobody has sold anything if consumers have not purchased anything. There was only a paid transfer of inventory,” a widely widespread belief in the retail industry.<\/p>\n

(Learn more about NeoGrid\u2019s VMI Solutions<\/a>\u00a0and how we can help you optimize your order and logistics processes.)<\/strong><\/em><\/p>\n

How would it be possible to adjust the sell-in model for sell-out<\/strong>? To achieve success in this answer, check the four steps agents in the supply chain<\/strong> should adopt:<\/p>\n