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Flow Duration Management

Generates cash flow.

Flow Duration Management™ (FDM™) is a method to optimize your end-to-end supply chain performance with the sole purpose of generating free cash flow by maximizing the flow of core products and reducing the burden of non-core products resulting in reduced cost and increased cash.

Reverses the cycle of pushing costs to your suppliers and customers. "You can learn volumes about the quality of a company by observing how they conduct meetings."

Implementing the FDM™ Process into your business will identify and spotlight hot spots in your supply chain and provide optimal solutions based on your business objectives, issues and constraints. FDM™ provides a step-by-step, logical path to performance improvement and eliminates the age old battle of taking cost out of the supply chain just to see more cost show up somewhere else in the supply chainBreak Through. FDM™ looks to vendors as strategic partners who understand the need to optimize total supply chain performance and join the team to provide seamless transitions for products on the journey through the supply chain. The goal is to eliminate waste in all forms through collaboration, communications, and well understood disciplines on all critical aspects of the supply chain.

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Guiding Principles

  • Create visibility to see what is happening in the supply chain versus what should be happening,
  •  Identify core & non core products to create scalable action.
  • Maximize value by leveraging the flow of core products.
  • Build synchronization on the flow duration of products linking the internal and external supply chain.
  • Build common language to create connectivity and collaboration throughout the organization and the
    foundation to extend to customers and suppliers.
  • Reduce total cost by focusing on flow not functions.

Break through outcomes

  • Overall reduction of inventory levels – increased cash
  • Improved fill rates on key items with increased turns and better fill rates
  • Clear visibility to problems and actionable next steps including obsolescence planning
  • Defined order strategies for products (continuous flow, make to order, order to target)
  • Supplier positioning and performance monitoring
  • Product family and SKU rationalization
  • Definition and implementation of new product merchandising development triggers
  • Solidifies the S&OP Process
Flow of a supply chain