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The developing world presents its own challenges in the way of Supply Chain Management. The issues include poor infrastructure, tax distortions and dispersed locations—resulting in large inventories, poor planning, and inefficient customer service.

Consumer product firms normally stock inventory for 25 to 35 days while their vendors store it for an additional 10 to 15 days. This inventory is retained to timely deliver products to customers. Despite these large inventories, customers often complain about products unavailability on demand. This excessive inventory is due to inefficiencies at various levels—managers’ inefficient planning, incorrect distribution strategies, sub-optimal replenishment, and unreliable supply chain.

An increasing number of firms have started implementing a more robust approach to supply chain--i.e., the "Pull" Replenishment System--where inventory is replenished based on actual demand as opposed to estimates.
This slide deck provides a detailed snapshot of the Pull Replenishment System. The 4 critical steps of the approach include:

1. Set Inventory Triggers
2. Establish a Monitoring Mechanism
3. Articulate and Communicate Rules for Response
4. Assign Responsibility for Regular Reviews

The Pull replenishment system is an effective approach in eliminating high inventory and low customer service levels.

Transforming the historical, deeply-embedded “Push” approach into a Pull Replenishment system is not an easy task. This presentation also outlines a 5-step approach to implementing this Change.

The presentation deck also includes some slide templates for you to use in your own business presentations.

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Source: Supply Chain Management (SCM) - Pull Replenishment PowerPoint document

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