In a nutshell: Action planning

Promotions are a common means of sales promotion in many industries. Customers are offered items, often from the standard range, at more favorable conditions and prices. In the weeks or months in which a promotion is running, sales volumes are often significantly higher than in weeks and months without a promotion. If the replenishment department is not aware of a planned promotion, it can easily happen that the item in question is sold out. Action planning prevents this fatal situation by defining action dates, articles and expected requirement quantities for articles in addition to normal planning and, if necessary, adjusting the requirement quantities. already reserved.

Our tip:
Make sure that you plan promotions that relate to live items and do not serve to sell off discontinued items in good time so that there is sufficient time before the promotion to procure the promotional quantity. Unfortunately, in practice it often happens that actions are planned too late. It may then still be possible to serve them by reserving the material, but the ability to deliver to customers without a campaign collapses.

It is also important to calculate promotional quantities from the history of consumption or customer orders. With customer orders, it is not always possible to clearly separate requirements for promotions from normal requirements. In these cases, use the quantity structure from the action planning.

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Prof. Dr. Andreas Kemmner
Prof Dr Kemmner is Co-CEO of the Abels & Kemmner Group and has carried out well over 200 national and international projects in 30 years of consulting work in supply chain management and restructuring and was the only publicly appointed expert for the profitability assessment of industrial companies in Germany for over 10 years. In 2012, he was appointed Honorary Professor of Logistics and Supply Chain Management by the WHZ. The results of his projects have already received several awards.
Picture of Prof. Dr. Andreas Kemmner

Prof. Dr. Andreas Kemmner

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