A highly seasonal product needs to be managed appropriately – simply using data across the full year will most likely lead to far too much inventory in the low season, and service failures in the high season. OnTarget manages this by calculating separate stock targets for each season, using data relevant to that time of the year.
This is particularly helpful when these seasonal SKUs have long lead times, allowing you to place the orders needed to fulfil your uplift needs at the correct time.
For one of our clients with a highly seasonal business, calculating a seasonal-versus-annualised target had the dual benefit of cutting their obsolescence in the low season and protecting their service in the high season.
…users to have two different safety stock targets for high and low seasons, reflecting the realities of demand in each.