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Unboring operations: solutions of the theory of constraints for products with short and long lifecycles
dates of programs start
4/11/2024
Format
3 Days
10:00 – 17:30
cost
27000 uah
Unboring operations: solutions of the theory of constraints for products with short and long lifecycles
Reliable operational processes in retail networks that ensure manageability and sustainable development instead of firefighting.
Audience - founders, CEOs, operations directors, commercial directors, logistics directors, category managers, regional directors, who:
Want to better understand the business logic of successful retail networks and calibrate formats, understand global trends
Care about reliable and attractive shelf choices for the customer
Feel the need to increase inventory turnover and aim for stable financial indicators to free up time and funds for network development
Fear/dislike operations and want to make it manageable and transparent
Want to eliminate chronic problems with cash gaps, frozen funds, write-offs, and non-liquid stocks
Dream of increasing the likelihood of faster payback of new locations
Want to get a specific roadmap for priority changes in the network
Are looking for ways to maximize the profitability of every square meter of space
The program helps find solutions in the following areas:
Global and local outlook on retail in Ukraine and the world
Features and requirements for retail of products with short and long lifecycles
Interaction between manufacturer-distributor-network: how each party views each other and what is required
Technologies to increase inventory turnover
Technologies to ensure the reliability of the defined assortment in locations without penalizing suppliers
A new assortment rotation system in categories that increases inventory turnover
Effective work with various products during peak demand fluctuations: promotions, activities, seasonality
Increase in profitability through the restructuring of operational processe
The structure of the program
Program Philosophy

We will figure out how to calibrate the network's business model, choose formats, work with consumers, and most importantly - what should be the operational engine in the network to ensure maximum revenue per square meter and more efficient scaling. The program focuses on a complete understanding of the retailer's operation in the new mindset: from the strategy of choosing the format and managing the product on the shelf to the exit of the consumer from the store with the paid product.
 

What to lay as the foundation of a sustainable business model of the company for years? What are the principles of building an operational system in the logic of TOC (Theory of Constraints) and pull? We will consider how to systematically solve such chronic problems of retail networks as unsatisfactory inventory turnover, sales, traffic, and average check declines, write-offs and returns, non-liquid goods, as well as the unreliability and low level of supplier service.

 

The main goal of the program is to deeply understand how high availability and “fresh” products affect traffic and average check. What processes in managing the product flow and assortment need to be built so that companies do not have to make relocations between stores and get rid of unwanted stocks through price actions? How to understand the sufficiency of choice in the category and not overdo it? How to soberly look at novelties and what mechanisms exist for balance in the category: signals of insufficient choice or oversaturation.

 

This training is suitable for retail networks and their suppliers who sell both short-lifecycle or high-frequency consumption products (food, medicines, perfumes, and cosmetics, etc.), as well as long-lifecycle or low-frequency consumption products (clothing, shoes, jewelry, textiles, digital and household appliances, electronics, furniture, construction or garden materials, etc.). It will also be useful for all suppliers: distributors and manufacturers, for whom retail networks are clients and there is a need to understand the logic, expectations from suppliers, and the directions of operational restructuring that will affect your companies.
 

Within 30 days after participating in the program, you can apply for a professional analysis of your network on a competitive basis. It is carried out selectively and free of charge by Apple Consulting® specialists. Based on the analysis results, Apple Consulting® will hold a meeting with you and your team and present the analysis results with a package of in-depth recommendations.


 

Day 1
4 November

Features of managing products with different lifecycles and requirements for retail networks

  • Key factors of retail network profitability.
  • Main characteristics of short-lifecycle and/or frequent demand products and their impact on management features.
  • Main characteristics of long-lifecycle and/or infrequent demand products and their impact on management features.
  • Main challenges and complexities in managing the product flow and assortment in such an environment.
     

 

The main driver of inventory size and reliability in stores

  • Objective determination of reliability.
  • Objective determination of excess inventory.
  • Impact of write-offs on network profit.
  • Key factors affecting inventory size and reliability in retail networks.
  • Replenishment time as the main driver and its components.
  • Methods to reduce replenishment time.
     

 

Amazing experience of SOCAR. Ihor Orlov, Executive Director of SOCAR gas station network

  • About SOCAR Ukraine and its business model.
  • Defining wow-format and wow-services.
  • Formation and management of assortment.
  • Inventory management system.
  • Loyalty system and work with traffic and average check.
  • General company management principles for continuous improvement.
     


 

Day 2
5 November

Algorithms for setting stocks and their dynamic replenishment in stores

  • The concept of a buffer and the methodology for its establishment.
  • Algorithms for setting stocks and their replenishment in locations.
  • Product replenishment algorithm on shelves.
  • Dynamic buffer management as an intelligent mechanism for responding to unpredictable demand fluctuations.

 

Central warehouse - The Heart of the Supply Chain

  • The current role of the central warehouse (distribution center) in retail.
  • Paradigm shift - how should the DC actually function and for what purpose? The main functions of the DC as the heart of the Supply Chain. Using the aggregation factor, refusing local efficiency, reducing replenishment batches, and speeding up picking.
  • Should the network operate without a DC and how?
  • Dynamic buffer management (DBM).

 

Practical use of TOC in distribution and own production to accelerate product flow. Stepan Slynchuk, Executive Director of SOVA Jewelry House and LOVE YOU brand

  • Practical use of the Theory of Constraints in distribution and own production to accelerate product flow.
  • Improvement of the assortment and inventory management system in distribution.
  • A package of changes in production: the order launch system in production, color statistics, and production priorities.
  • MLT (manufacturing lead time) indicator and its importance for the company. Reducing work-in-progress.
  • How production changes have affected distribution and retail indicators: reducing inventory, increasing sales, turnover, and business profitability.
  • Impact of changes on work with new collections, seasonal spikes.
  • United.24 case: change of approach to staff and motivation, etc.


 

Day 3
6 November

New approach to assortment management and category management. Working with peak demand fluctuations (promotions, seasonality)

  • Forget ABC XYZ – analyses! What to replace them with and why?
  • Introduction of the concepts of “head”, “body”, “tail” of the assortment, and algorithms for their determination.
  • How to work with fast-rotating and slow-rotating positions.
  • Improvement of the category management system.
  • Main patterns of demand spikes.
  • Assortment management during peak demand spikes or drops (promotions, seasonality, rocket attacks, power outages, etc.).
  • Management of new collections, management of goods during seasonality changes.
     

Retail as a business. Serhii Voitsekhovskyi, Member of the Board of Directors of BGV Group Management

  • What is a retail network as a business? Vision, mission, and their impact on the format.
  • What are the retail formats and what is the key difference between them?
  • Food retail: global and local outlook.
  • Global trends in the retail business.
  • Interaction between manufacturer and network: how it looks from the retail side.
  • Cases of specific networks: paradoxes and patterns.
  • Roadmap for priority changes in the network.

Faculty
Julia Plieva more details
Adjunct professor
Oleksandr Sokolenko more details
Visiting professor
Ihor Orlov more details
Visiting professor
Войцеховський Войцеховський more details
Visiting professor
Степан Слинчук more details
Visiting professor
What do you need to attend?
1.
Application form
fill out the application form on the website
2.
Communication
talk to the manager about the request for training and expectations from it
3.
Participation confirmation
to reserve a spot in the group, a 50% prepayment of the program cost is required. After completing 3 modules, participants pay the second half for the remainder of the program
cost
27000 uah
Apply for the program
For more information about the program, please contact
Daryna Symych
EDP program manager
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