The effects on purchasing behaviour due to supply bottlenecks, crises, and rising costs were clearly noticeable in 2021 – and will also shape the coming years.
The most prominent example in 2021 was the blockage of the Suez Canal by the Ever Given, a huge container ship. Hundreds of ships were stuck at both ends of the canal, with serious consequences for global trade due to extreme delivery bottlenecks and production losses.
The canal blockade was compounded by the ‘China container crisis’, with its massive supply chain disruptions caused by China’s zero-tolerance COVID policy, partial port closures, and a global shortage of containers. The crisis dragged on well into 2022, as the backlog of ships and the difficulties in returning empty containers could only be resolved slowly.
Added to this were steel shortages and skyrocketing prices. Last year, the steel market was characterised by extreme shortages and historically high raw material prices – a situation that had an impact on everything from cutlery manufacturing in Vietnam to the core sales market in Europe.
All these crises greatly affected Buchbach-Consulting’s activities as ‘Interim Demand Planning & Allocation Manager’ for a brand of an international corporation in the household goods sector.
Example: stainless-steel cutlery. In this case, allocation plans for distribution channels within the sales regions had to be drawn up regularly, taking into account allocation targets. In addition, the limited available quantities of individual cutlery items were allocated to the various relevant ‘cutlery sets’ for each product model. Preference for certain sets for branches, e-commerce, specialist retailers and key accounts had to be considered – and everything had to be done within the framework of the underlying contractual terms and conditions on ensuring the availability of goods.
In addition to the complex creation and coordination of allocation plans – even in the face of resistance from various parties – their smooth execution had to be ensured in detail. A clear time slot schedule specified which activities, such as blocking stocks, packing, rebooking, order prioritisation and ATP checks, had to be carried out and when.
Contact us. We can support you in sales planning and inventory allocation, even in times of constantly changing external influences!
info@buchbach-consulting.com