Category — MOI - Marketing & Operations Integration

Inventory management is a risky business. Too much product on hand increases carrying costs. Too little reduces customer satisfaction. Finding the perfect balance between the two is near impossible.

The best managers know that they are in the risk management business and use every available tool to minimize their exposure. One key component is the cost of backorders. Knowing how much being out of stock costs your company helps refine the order decision.

There are both short-term and long-term costs associated with backorders. The short-term are the processing costs for multiple shipments to customers and receipts from vendors.

The long-term costs should keep you awake at night.

Being out of stock costs you customers. [Read more →]

It doesn’t keep you from being one either.

There’s an ongoing conversation about what defines a social media guru. Occasionally I join in, but mostly I chuckle. The questions are legitimate, but I experience déjà vu every time I see a tweet or post debating the validity of other people’s claims.

Years ago, I submitted a proposal to conduct an efficiency audit on a company’s operations. I lost the contract. It happens, but this loss was particularly poignant. The winning firm specialized in marketing.

What did this marketing firm know about operations? [Read more →]

Last week I answered a call from one of my favorite retail clients. My friendly greeting was answered with “I have a vision that keeps turning into a nightmare.” No “hello, how are you?” or “Cold enough for you” chitchat in this call. She was clearly on a mission.

I suggested that we start with the vision. Her vision was an integrated organization where everything from marketing to fulfillment worked together. Customers and prospects could move easily from one channel to another finding what they need or want along the way. Their social media efforts would ease the way for their catalog and email campaigns.

She knew the benefits; we’d been discussing them for months. She knew the urgency because I’d been nagging encouraging her to get started. She knew the risks of inaction. Her competition was already gaining market share. She wanted to start the process but there was a problem. [Read more →]