When the Client «Isn't Right» or Restrictions on Use of an Indicator «Perfect Order» in the Network Retail Companies.

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MAGAZINE №1 (78) February 2017

AUTHORS  MILOV S.N. 

CATEGORY  Analysis in logistics and SCM Controlling Inventory management Logistics service management Retail companies’ corporate logistics

ABSTRACT

Nowadays the development of retail chain stores format takes place. Some companies go own way, while others use benchmarking but all of them are interested in profitability maximization on condition that the overstock and out-of-stock levels are optimal. In the article the SCM project results are discussed. It is shown that it helped to reduce stock level by several times in a big federal retail company. After the successful solution of the problem there was detected the aberrant behavior of one of the «Perfect Order» indicator elements. It is the «Quality of the order implementation». This has brought to the extemporaneous short-run losses. In the article the alternative to this indicator is proposed and the realization is demonstrated.

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