About this Presentation
The Decisive Competitive Advantage for a CPG - Consumer Packaged Goods company is to increase product turnover in retail chains. The VMI, or Automatic Replenishment, is a solution for a small number of retailers. On the other hand, retailers have a small number of suppliers that can deliver automatic replenishment. Out-of-stock levels in retail are high, and consequently there is loss of sales for manufacturing companies. ERPs set shipment priorities by internal criteria, or by observing local optimum conditions, but do not consider risks related to loss of sales. To ensure that there is no out-of-stock at the point of sale, manufacturers must prioritize order delivery taking into account the risk of product shortage at the store. Based on this information, the manufacturer can better plan its delivery in order to increase the turnover of its products and, at the same time, the retailer can increase availability on the shelf, reducing for both parties, losses caused by product shortages. It´s necessary to prioritize items shipments using the Throughput Value Day (TVD) indicator, which means the risk value of sales loss, whose calculation is made considering gains and the number of days for product shortage risk, and is included in the manufacturing ERP. To maintain a single priority criterion, retail networks are integrated into a single cloud system that allows the standard calculation of the TVD indicator, updating daily the priorities in the ERPs of the manufacturing companies. This is a new dimension for the supply chain where all retail networks are integrated to manufacturing companies.
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.
An automated system flags non-moving SKUs for phase-out, helping to manage inventory.
The system respects manual decisions made by planners, ensuring human oversight and control.
The system provides flexibility in SKU status viewing and selection for analysis, aiding in inventory management.
Instructor(s)
Miguel Abuhab
Miguel Abuhab is a mechanical engineer, who graduated from ITA - Aeronautics Institute of Technology. In 1999, he founded NeoGrid, a provider of Supply Chain Management (SCM) software solutions, which has become a leading provider in Brazil, listed on the stock market in December 2020. Currently holds the position of Chairman of the Board.
Since 2003, Abuhab has worked on its Tax Simplification Plan for Brazil - Abuhab Model of VAT Collection - which served as the basis for the Tax Reform Report approved in December. In 2019, he presented his Plan to the CCJ - Constitution, and Justice Commission, which amends the National Tax System. About the subject, he wrote books that address tax reform to unlock Brazil and sustain growth and social inclusion.
Abuhab is an advocate of Eliyahu Goldratt’s ideas, incorporating in his business expertise the Theory of Constraints (TOC) and ideas related to the supply chain He also works strongly in social responsibility projects, focused on education. The TOCfE (TOC for Education) program, sponsored by the Miguel Abuhab Institute (IMA), has trained 200 volunteer teachers in 20 public and private schools in Joinville, serving more than 5,000 children.
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.