Better Buying Institute has published a Deep Dive, and a number of accompanying resources, on the issue of Monthly Order Variability.
Monthly Order Variability (MOV) reflects the changes to the total number of items a supplier ships to its customers from month to month, including the peaks and valleys of high seasons, low seasons and everything in between. It is one of the practices suppliers participating in Better Buying TM’s annual ratings cycle have identified as having a high impact on their businesses and sustainability efforts.
One key factor leading to negative impact on suppliers as a result of MOV was found to be the length of time the supplier has worked with a buyer, with those who have worked together for more years at greater risk. Supplier impacts are also found when a buyer accounts for a larger share of a supplier’s business, where a higher percentage of production capacity is dedicated to a particular buyer, or if a supplier is a strategic supplier.
In addition to the Deep Dive report, Better BuyingTM has also published the findings of a recent Supplier Roundtable on the same topic, where suppliers came together to discuss the challenges they were experiencing in MOV, and to make recommendations as to what buyers can do differently.