Solving the $1.8 Trillion Inventory Distortion Problem with Karl Swensen
The Logistics of Logistics
Transitioning to Pull Systems in Lean Inventory Management
This chapter explores the transition from push to pull systems in lean inventory management, focusing on customer-centric approaches for high-value products. It highlights the historical origins of inventory distortion, challenges faced during the COVID-19 pandemic, and the significant monetary losses estimated globally. The speaker delves into the importance of accurate demand forecasting, technology in improving processes, and their personal journey through supply chain consulting and experiences at various companies.
Karl Swensen and Joe Lynch discuss solving the $1.8 trillion distortion inventory problem. Karl is the CEO and Co-founder of Pull Logic, an AI-enabled tech company focused on reducing lost sales for retailers, brands, and manufacturers due failure points in the supply chain and selling processes.
Summary: Solving the $1.8 Trillion Inventory Distortion ProblemIn this podcast, Karl Swensen, CEO and Co-founder of Pull Logic, discusses how their AI-enabled technology helps retailers, brands, and manufacturers reduce lost sales by addressing supply chain and selling process failure points. The company focuses on solving the problem of inventory distortion, which is having too much of the wrong inventory and not enough of the right inventory. Pull Logic uses the Product Availability Ratio (PAR) score to optimize inventory management and ensure customers have access to the products they want when they need them. By using data analytics and advanced algorithms, Pull Logic helps businesses identify the right products to stock, increase sales, reduce unproductive inventory, and improve sustainability. The podcast also touches on Karl Swensen's background in industrial and systems engineering and his experience working with major companies in supply chain consulting.
#InventoryOptimization
#AIPoweredSupplyChain
#ReducingLostSales
About Karl SwensenKarl Swensen is the CEO and Co-founder of Pull Logic, an AI-enabled tech company focused on reducing lost sales for retailers, brands, and manufacturers due failure points in the supply chain and selling processes. Karl is an executive and professional with a proven track record of growing businesses, implementing change, and leveraging digital technologies with a wide range of companies in North America, Asia, and Europe. His expertise is in supply chain, operations, and manufacturing and has worked at the intersection of strategy and technology to maximize results for companies and shareholders. His work in industry, consulting, and with technology companies have given him a unique perspective in understanding the complete picture and future vision and how to implement it, and he has also led large groups of people with revenue and P&L responsibilities. In his free time, he likes to snow ski, compete with his spin cycle buddies, and travel with his family.
About Pull LogicPull Logic is based on research out of the Georgia Institute of Technology and the work of Dr. Benoit Montreuil who leads the Supply Chain and Logistics Institute there and solves the $1.8 trillion problem of “Inventory Distortion” as defined by the retail advisory firm, IHL Group. Its narrowly focused AI solves this inventory distortion problem of “lost sales” and “unproductive inventory” and has yielded results of up to 30% revenue increase and up to a 50% decrease in unproductive inventory. While the Pull Logic solution is simple to understand and implement, it uses sophisticated algorithms and models based on the customer’s data to predict customer demand and manage inventory more efficiently. More importantly, it does not replace existing systems but complements and works alongside them to achieve these results and can be implemented in a matter of weeks.
Key Takeaways: Solving the $1.8 Trillion Inventory Distortion Problem- Learn how AI-enabled tech company Pull Logic reduces lost sales for retailers, brands, and manufacturers.
- Discover how Pull Logic uses AI to solve inventory distortion and improve supply chain efficiency.
- Understand the concept of creating a pull system rather than the traditional push system in inventory management.
- Explore how accurate demand forecasting and inventory optimization ensure the right products are available for customers.
- Gain insights into the massive problem of inventory distortion and its trillion-dollar impact on companies.
- Learn about the Product Availability Readiness (PAR) concept and how it measures inventory and informs deployment decisions.
- Discover how the Pull Logic's Product Availability Ratio (PAR) Score optimizes inventory levels for retailers, brands, manufacturers and their dealer networks.
(00:00:00) Solving the $1.8T Inventory Distortion Problem
(00:00:58) Solving Inventory Distortion with AI
(00:01:16) Pulling Inventory to the Consumer
(00:02:25) Solving Inventory Distortion with Accurate Forecasting
(00:06:30) From Georgia Tech to Supply Chain Innovator
(00:08:38) Pologic: Simplifying Supply Chain Challenges
(00:10:17) Solving Inventory Distortion with Pologic
(00:11:15) The Frustration of Limited Shoe Selection
(00:12:26) Optimizing Inventory with Product Availability Readiness
(00:15:35) Optimizing Inventory with Predictive Metrics
(00:19:31) Optimizing Inventory with the Parfix Solution
(00:23:46) Optimizing Inventory with Smarter Data
(00:28:37) Optimizing Inventory for Better Sales
(00:31:34) Optimizing E-commerce Inventory Management
(00:35:49) Improving Inventory Efficiency with Data Analytics
(00:39:44) Solving the $1.8T Inventory Distortion Problem
(00:41:51) Leveraging Data for Better Supply Chain Decisions
(00:42:57) Optimizing Inventory Management with Artificial Intelligence
(00:45:05) Engaging Logistics and Supply Chain Leaders
Learn More About Solving the $1.8 Trillion Inventory Distortion ProblemRetail Inventory Distortion Study – The Good, The Bad, The Ugly – 2023
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