Managing the "Long Tail" problem in Distribution and Retail
This video explains the source of the long tail distribution that results from a growing number of SKUs (Stock Keeping Units) and customers required to increase sales in a consumer goods environment. The business potential of dealing with such tails is usually diminished. The first part of this presentation shows a detailed analysis of the behaviors within a chain composed by wholesalers, small shops, distribution companies, producers and brand owners, and the vicious cycles that emerge with these behaviors preventing a significant improvement. The second part goes beyond the TOC replenishment solution sharing what has been implemented in a dozen of companies of various types to solve this problem. Last but not least an example in the fashion/retail industry is shown and explained.
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