CONSERVATIVE ESTIMATES
These estimates have the following assumptions:
- You promise immediate delivery of your products.
- Your market share is less than 25%.
- With FILLRATE100 and adopting TOC management philosophy, you can achieve 100% fill rate.
- Few (if any) competitors in your market can fulfill orders so well.
- Your customers HIGHLY value availability.
If all of the above is valid, then the consequences are:
- In a relatively short time you are capable of increasing sales by eliminating stockouts.
- By reducing inventory, cash is freed that also contributes to increasing sales.
- With the new way of managing distribution, you can offer a service to your customers that increases sales further (this is not considered in the estimates).
