Real-Time Isn't All It's Cracked Up To Be
We often hear about the "need" to migrate to real-time processes for better business outcomes. But is real-time always the best move?
Let's take a closer look:
- Understand Your Business Needs: Real-time can be crucial—for instance, if your product is containers and a storm causes your stock to be lost at sea, you need to know ASAP. But in many cases, such urgency isn’t necessary.
- Consider Retail: In a fashion store, an SKU might sell less than one item per week per store. Even in grocery stores with 30,000+ SKUs, 80% sell less than a case per month. Do you really need real-time demand forecasting and warehouse picking when your stock might sit for days before shipping?
- Weigh the Costs: The reality? Investing in real-time systems can be costly and might not provide a significant return. Missing a few sales due to out-of-stock items is often less damaging than the expense of a full real-time setup. Plus, your best sellers likely sell out early and at full price anyway—so, are you really losing much?
The Key? Before jumping on the real-time bandwagon, take a step back. Analyze your operations, consider the actual benefits, and choose solutions that genuinely align with your business goals.
What should you do? Partner with vendors who understand your industry's nuances and can provide tailored solutions.
If you're rethinking your approach to real-time systems or looking for tailored advice on optimizing your processes, let's connect. Your business deserves solutions that make sense, not just the latest trends.-
Posted by Brian Hume
16th August 2024
