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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Picture of Prof. Dr. Andreas Kemmner

Prof. Dr. Andreas Kemmner

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