Previous we discuss on segmentation and strongly recommended to categorized the product into 3 group :

• High Runner
• Medium Runner
• Low Runner

Anyhow, there is a need to find a solutions on manage Medium and Low Runner which mean we need to find solutions to satisfy customer requirement for any business spike in demand for product fall into these two category.

For High Runner, we have invest inventory to capture the supply flexibility for specific customer needs with the defined lead time.  I would go into this at a later stage.

For Medium and Low Runner, this is the category that we serve with longer lead time due to limited spending on the supply coverage but yet we need to meet customer satisfaction level. How are you going to manage this? ……………My proposal as below :

• Define your Medium and Low Product Runner Lead Time clearly to end customer to ensure customer satisfaction issue has been addressed.
• Create bundle package of Medium and Low Runner Product to High Runner Product to boost business and this will able to predict the Medium and Low Runner Product demand.
• Identify  key component ( problematic supplier, long lead time components and unique components) and only pipeline certain level of inventory in order to minimize the impact of the spike or unforecasted order drop in.
• Create Strategic Inventory based on history consumption to define your planning on inventory coverage.