About this Presentation
Retail chains have long struggled with keeping within budget in purchasing of product categories. A widespread solution that has taken roots is called “Open to Buy” (OTB), in this each product manager / purchaser is given a budget and they must respect this limit in the purchasing of the respective category. OTB generates major negatives. First: being a budget makes the purchaser assume the “use or loose” mentality and buy even when they have no demand justifying the purchase. Second: the uniform treatment of new SKUs, lower performing SKUs and high performing SKUs makes it very hard to align the mix to the real demand in the chain. In clients Neogrid has come across the use of OTB and when the company implements the TOC Distribution solution the OTB generates the above negative effects and in effect prevents the significant improvement of inventory turns and invites behaviors not in line with the demand distorting and sometimes derailing the solution. There are positive aspects of OTB, namely control and a mechanism to refresh the mix with new products (NPI). In this presentation, we outline a new algorithm that replaces traditional OTB with a new version fully compatible with the TOC Solution and at the same time preserving the positive effects of traditional OTB. The result is a comprehensive and effective system to manage categories, introduce new products and align the retail (and its chain) with demand. Video length: . PDF: slides.
What Will You Learn
To help you get the most value from this session, we’ve highlighted a few key points. These takeaways capture the main ideas and practical insights from the presentation, making it easier for you to review, reflect, and apply what you’ve learned.
Instructor(s)
Jennifer Eckman
Ms Alka Wadhwa
Alka Wadhwa is an experienced consultant and process improvement expert with over 24 years of expertise in the Theory of Constraints (TOC), Lean Six Sigma, and organizational performance optimization. She has successfully led projects in healthcare, financial services, and manufacturing, driving significant improvements such as a 67% boost in hospital operations and a 140% increase in outpatient visits.
Previously, Alka Wadhwa spent 17+ years at GE Global Research Center, where she led initiatives to enhance various GE businesses through advanced technologies, process redesign, and system optimization. Founder of Better Solutions Consulting, LLC, she specializes in using TOC, Six Sigma, and data analytics to streamline operations and build high-performance teams.
Her work has earned her multiple accolades, including the Empire State Award of Excellence in healthcare.
Dr Gary Wadhwa
Dr. Gary Wadhwa is a Board Certified Oral & Maxillofacial Surgeon with extensive experience in the field. He completed his Oral & Maxillofacial Surgery training at Montefiore Hospital, Albert Einstein College of Medicine in Bronx, NY, and has served as an Attending at prestigious institutions like St. Peters Hospitals, Ellis Hospital, and Beth Israel Hospital in NY. With a career spanning over two decades, he was the former CEO and President of a group specialty practice in NY from 1994 to 2015. Dr. Wadhwa holds an MBA from UT at Knoxville, TN, and has undergone additional training in System Dynamics at MIT, Health System Management at Harvard Business School, and Entrepreneurship and healthcare innovations at Columbia Business School. Committed to expanding access to Oral & Maxillofacial Surgery care, he is currently engaged in a meaningful project to provide healthcare services to underserved populations in inner city and rural areas through non-profit Community Health Centers.