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Thus, it searched out radically different ideas - ideas that might go against the grain of the company's strongly held internal wisdom but would later prove effective in reducing the cost of inventory. More importantly, those ideas enabled P&G to embark on a path that is moving it closer to a system of dynamic manufacturing, dynamic planning, and dynamic replenishment.
A few years ago, two numbers were driving Procter & Gamble (P&G) crazy. The first number was reflected in its inventory: P&G had $3.8 billion of inventory floating in its distribution system. The second was its out-of-stocks number. Of the top 2,000 items in a grocery or mass-discount store, 11 percent are out of stock at any time. P&G products comprised a fai
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