Mila and Zebra agree

Dmitry Nikolaev, the head of the sales department of the Fortis company, which manages the Zebra brand of children's shoes, visited the office of the Ural distributor of the wholesale company Mila. The parties discussed the distribution of TM Zebra, in particular the problems that arise at different stages of the introduction of automatic information exchange, as well as the issue of the manufacturer changing the supply strategy.

We would like to remind that the management of Fortis has made a decision to reduce its stock. If earlier, at the time of manufacture of TM "Zebra" products, the factory did not calculate to whom and in what volumes the goods would be sold, then by the new season production will be planned strictly at the request of buyers of children's shoes, received as a result of regional presentations. At the same time, no more than 15% will be allocated to the free warehouse.

“Considering that the majority of entrepreneurs are accustomed to purchasing products as needed, and activity during the days of presentations often leaves much to be desired, such a manufacturer's strategy is very risky. A free warehouse in the amount of 15% of the total volume of strategic orders is actually a shortage of goods. Our experience shows that the optimal stock in the warehouse should be at the level of 50%. A shortage of goods in one season can lead to an oversupply in the next, when the manufacturer, remembering the deficit, decides to produce a three times larger assortment for the new season, "commented Alexander Borodin, manager of Mila.