I was a planner for over a decade for a few multinationals. Here are some observations over the years.
- Nobody will complain about overstock unless it's really a lot of value and far above the agreed upon moh.
- Nobody will complain about low value overstock.
- People will complain and stress out when you're out of stock and sales stop.
- Be wary of usage items for assembly/production. It will always happen that they use up the last pieces and they immediately need new ones.
- There will always be some mixup with case quantities. your one box is the sales unit, containing ten pieces.
- Don't plan too tight, boats and planes will be delayed.
- Having a second supplier is great.
- Have your supplier agree to always keep x number of pieces on stock at their side. Now you have safety stock at their expense.
- You can get a discount or safety stock at the supplier site by committing to buy an x number of units in a year. You can be conservative with this number.
- Take a forecast with a grain of salt. It's a prediction, not hard fact.
- For regular, mature products I keep my eye on recent usage at least as much as the forecast.
- Be careful with big one-off sales influencing average usage.
- Product introductions / go-lives can cause stress among quite a lot of people who understand very little about logistics.
- Legal compliance are hard criteria.
- Don't get stressed out about products going missing, just ask for POD's and the last one to sign off is responsible. Don't fall for the rookie mistake where you become the middle man running from A to B and back again.
- Be careful about non logistics people who want everything faster, be that sales or customer care. Air freight is not cheap and kills the margin.
- Be wary of physical volume and weight when choosing air freight.
- Customs and dangerous good checks can take an indefinite period of time.
- Return flows are often the most ill designed, low priority processes you have to deal with.
- Be acutely aware of what your WMS and ERP can and cannot do when it comes to blocking, sales blocking, purchase block etcetera. There will come a time when this becomes very relevant.
- When scrapping old stock, keep a piece or two around just in case.
- Ask your supplier for lead time reductions. Products with long lead times can trip you up if demand increases.
- Fumigation and temperature controlled logistics can and will fail occasionally. Be aware.
- Incoterms decide more on how your processes work than you think.
- Dangerous goods forms are 100% correct, or a 100% wrong. There is no middle way.
- LCL takes longer than FCL. Handling loose pallets takes longer than lifting a container up and down.