{"id":97563,"date":"2020-12-29T16:02:49","date_gmt":"2020-12-29T10:32:49","guid":{"rendered":"https:\/\/www.vskills.in\/certification\/tutorial\/?page_id=97563"},"modified":"2024-04-12T14:25:32","modified_gmt":"2024-04-12T08:55:32","slug":"other-planning-techniques-vmiqrcrp-etc","status":"publish","type":"page","link":"https:\/\/www.vskills.in\/certification\/tutorial\/other-planning-techniques-vmiqrcrp-etc\/","title":{"rendered":"Other Planning Techniques (VMI,QR,CRP, etc)"},"content":{"rendered":"\n
\"Other<\/a><\/figure><\/div>\n\n\n\n

Other Planning Techniques (VMI,QR,CRP, etc)<\/strong><\/h3>\n\n\n\n

Other inventory planning techniques, especially for retail stores are Vendor-managed inventory (VMI). This is where the manufacturer is given the responsibility for monitoring and controlling inventory levels at the retailer\u2019s DC and in some instances at the retail store level as well. Specific inventory targets are agreed, and it is the responsibility of the manufacturer to ensure that suitable inventory is always available. Such arrangements depend on accurate and timely information, and suitable computerized systems have become available in recent years.<\/p>\n\n\n\n

The main advantage for retailers lies in the reduction of operating costs and also the delay in payment for the products in question. For manufacturers, it is suggested that running a VMI system for a retailer provides the opportunity to develop a much closer, and hopefully more binding, relationship with the retailer as well as giving a much better visibility of real demand. This can make the planning of production much easier and can lead to significant reductions in inventory holding right through the supply chain.<\/p>\n\n\n\n

Continuous replenishment (CRP). The aim with CRP is to develop free-flowing order fulfillment and delivery systems, so that pipeline inventories can be substantially reduced. Such systems use up-to-the-minute point-of-sale information (via electronic point-of-sale \u2013 EPOS \u2013 systems) to identify real-time demand and to pull product through directly from the supplier, through the DC and on to the retail outlet. CRP systems are thus able to synchronize this flow of product by focusing on end-user requirements via the use of real-time demand, linked to flow-through distribution systems that allow for cross-docking, store-ready packaging and automated handling. Once again, pipeline inventory is kept to a minimum or completely eliminated.<\/p>\n\n\n\n

Quick response (QR). A further development of the JIT approach is that of quick response (QR). Here the aim is to link the manufacturer more closely to the actual demand at the retail level. There are strong similarities with continuous replenishment systems, but with QR the emphasis is on time compression and the opportunity for the manufacturer to redesign production operations to allow for a \u2018little and oft en\u2019 approach to resupply. Short production changeovers and small batch sizes enable the manufacturer to respond to changes in demand in a very short timescale.<\/p>\n\n\n\n

Efficient consumer response (ECR) \u2013 It is another concept that uses the most recent advances in information technology to allow a streamlined approach to the supply of products to retail stores. ECR was originally set up and run in the USA with the aim of improving service and reducing costs in the grocery industry by focusing on the efficiency of the supply chain as a whole rather than on individual components in individual companies. The goal of ECR is therefore to develop a customer-driven system that works across the supply chain. One original definition is still very applicable today: \u2018A seamless flow of information and products involving manufacturers and retailers working together in joint planning and demand forecasting.<\/p>\n\n\n\n

Category management (CM) \u2013 It has been developed to provide greater support for product and inventory control and management. It is essentially a means of categorizing products into \u2018families\u2019 that have very similar characteristics in terms of their selling profile. Thus, SKUs from very different product groups may be categorized together and their inventory holding planned in the same way because they have the same order or usage patterns. Typical examples of these categories are:<\/p>\n\n\n\n