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Supply
Chain by the Numbers |
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- May 20, 2016 -
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Impressive New Self-Driving Truck Start Up; Yergin on Where Oil Price is Headed; Walmart has Decent Results, Sees Stock Price Jump; Seagate Sees Forecast Accuracy Make Big Jump |
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9.6%
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That is by how much Walmart's stock price jumped yesterday on news that it had achieved just under a 1% rise in its Q1 sales, it sharpest one day stock rise since October, 2008. Why such a big spike on a rather patry jumped in sales? Because even that small rise is bucking the trend of other retailers, such as Macy's and Target stores, that have posted disappointing Q1 results. What's more, Walmart was able to achieve that revenue increase while decreasing inventories 3.5%. Sales at Walmart's US stores open at least a year rose 1% in the
quarter ended April 30 - the seventh straight quarter of such gains. Profits at Walmart, however, were down 7.8%, as it continues to invest heavily in ecommerce. "The numbers are not great by any means, but they are good compared to what expectations were," said Brian Yarbrough, retail analyst at brokerage Edward Jones. We'll note Q1 revenue at Amazon was up 28%. |
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18 |
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That has been the improvement in data storage vendor Seagate's forecast accuracy a quarter out since acquiring a new demand planning system (Logility) and transforming to become a more demand-driven enterprise. That improvement took forecast accuracy from the low 50 percentage range to 70% today, an improvement that has had an important impact on inventories and the bottom line. That according to a presentation by two Seagate managers at this week Gartner Supply Chain Executive Conference in Scottsdale, AZ. Seagate also emphasized the imperative to get your demand planning hierachies right, noting they actually paused the project several times to make sure they had those hierarchies nailed. Also impressive is Seagate's collaboration with top OEM customers, with which it develops first an unconstrained forecast, then a constrained demand and supply plan, and finally a detailed look at execution across that plan on a monthly basis. |
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