The real world doesn’t follow the rules. Unpredictable behavior in response to macro events creates demand volatility in every link of our global supply chain. As the bullwhip effect demonstrates, it only takes relatively small fluctuations in supply or demand to create massive bottlenecks. Huge, unexpected demand changes can bring unprepared companies to their knees.
The better you prepare now, the better you will be able to manage in the future. Your best defense against radical uncertainty is a resilient supply chain that’s ready for anything.
Supply chain planning leaders should engage in scenario planning based on likely outcomes of the demand or supply. Good planning involves building scenarios based on real outcomes possible in your business and identifying trigger points to set an action plan.
…by understanding the uniqueness of demand for each item you sell, across location, time frame and other key factors ranging from promotions to weather
…by using automation to anticipate real-world uncertainty and plan for service levels your customers can count on, no matter what happens
…by optimizing your product inventory, distribution, and replenishment from the point of supply to point of consumption, maximizing your revenue and profit
ToolsGroup is how organizations achieve their target service levels while optimizing inventory—no matter how complex their supply chain is or how much demand changes. This way, they can be ready for anything. Next, let’s look at three of the biggest risks to businesses during supply chain disruptions, and how you can recover rapidly and be ready for whatever crazy events are around the corner.