7. The role of the DDS&OP in a distribution DDAE

7.1 DDAE in cosmetics distribution

In a cosmetics environment, products are distributed via multiple channels: supermarkets and hypermarkets, selective distribution (specialist stores), mail order and the Internet. Short life-cycles, regular promotions and events are real challenges when it comes to managing information and physical flows.

Calculation of average daily consumption (ADC), based on sales history and forecasts, enables buffers to be sized. Demand from regional warehouses is then propagated to the central warehouse buffer, which is also sized to absorb its own variability. Minimal variations can therefore be ignored throughout the distribution chain, and teams can concentrate...