Letโ€™s Explore another way to smooth demand. Converting from reorder point to reorder period.

Instead of just relying on the Reorder Point, talk to your customer about giving the Reorder Period a try. With a little tweak in your customer’s system, you could smooth out those demand bumps.

The Reorder Point is like a set alarm that goes off when your inventory hits a certain level, prompting a new order. But with the Reorder Period, it’s more about collecting usage data over time and placing orders at consistent intervals, adjusting the quantity as needed. ๐Ÿ“Šโœจ

Let’s break it down with an example: Say you’re dealing with 100 different items, averaging 10 units a day, but the usage isnโ€™t always consistent. The demand will look like this (insert arrow)

Switching to a reorder period will do a better job of keeping your overall demand smoother. ๐Ÿ“ˆ Like this

By homing in on what your customers truly need, you’re not just smoothing out operations โ€“ you’re setting the stage for transformative enhancements! ๐Ÿš€ And the best part? As demand becomes more consistent, you’ll uncover even more opportunities to fine-tune and optimize. It’s like finding the perfect rhythm in your business. ๐ŸŽถ

A good starting point is striving for 90% of your demand to repeat monthly like clockwork. Sure, there might be occasional seasonal bumps along the way, but fear not โ€“ we’ve got plenty of tricks up our sleeves to handle those too! ๐Ÿ˜‰

Excited to explore tailored demand-smoothing strategies for your business? Don’t hesitate to drop me a message.

Derek Shoemaker Principal ๐Ÿ“ง Email: derek@preciseprocess.co