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TOC in Distribution

Eight lessons on keeping the right stock in the right place without guessing the future: what distribution really is, why stock is needed, the conflict behind too much and too little, and the five elements of TOC replenishment, ending with a game where you run a central warehouse and four distributors.

  1. 1 What is distribution?Not transport, not warehouses, not distributors. Distribution is the decisions and actions that put inventory where it will be bought. And a sale isn’t a sale until a consumer buys. 10 min
  2. 2 Make to order or make to stock?Why not simply take orders, make and deliver? Two times decide whether a business can work to order or must hold stock, and it isn’t the industry, the price or the product. 12 min
  3. 3 The distribution problemStock-outs and excess stock of the same product, at the same time. Why it happens, the conflict every supply chain manager is caught in, and what it costs. 14 min
  4. 4 From push to pullBetter forecasting won’t end the swings. A stock buffer that absorbs uncertainty, refilled with exactly what was sold, will. 12 min
  5. 5 Sizing the bufferFour factors decide how much stock a location needs. Only one of them is really in your control, and it changes the other three. 12 min
  6. 6 Cutting replenishment timeMost of replenishment time is batching, not work. Hold stock at the source, order daily and dispatch often, and the time, and the stock, fall away. 15 min
  7. 7 Buffer management and rationingOne colour per product per location decides what ships first, a daily report makes it routine, and a simple rule shares out scarce stock without leaving anyone stranded. 15 min
  8. 8 Adjusting to changeWhen demand itself moves, buffers must follow: raise them when they stay red, lower them when they stay green, and build them up ahead of known seasons. Then run the whole solution yourself. 20 min
  9. ✓Your certificateUnlocks when all eight quizzes are passed.

Start lesson 1

This course is built from the distribution and replenishment sessions I teach. It pairs well with TOC in Operations, which covers the plant that feeds the supply chain.