Every company wants to achieve Supply Chain excellence by delivering the right product to the right customer at the right time, and more importantly, at the lowest cost.
Like kryptonite is to Superman, many supply chain experts struggle to achieve this excellence with many facing these decisions:
- How to accurately predict the future demand in a rapidly changing market?
- Which distribution center should I use to fulfill the demand?
- What is the optimal stock level to ensure on-time deliveries and to avoid wastages?
- How to allocate the demand to the optimal plant?
- During peak season, should I pre-produce, use overtime or outsource?
As if making the above decisions are not difficult enough, there are risks involved:
- When you try to increase service level by building stocks, there are risks of over-stocking which may lead to obsolescence.
- When you try to reduce inventory level and improve cash flow, there are risks of under-stocking which may result in missed deliveries.
“What makes Superman a hero is not that he has power, but that he has the wisdom and the maturity to use the power wisely.” Christopher Reeve
In a supply chain industry, with the right amount of information provided (wisdom) and the right tools (power), a supply chain team (Super Heroes) can then be able to make those super hero decisions to maximise customer service level, minimise inventory and minimise operating costs.
The solution? Integrated Supply Chain Planning!
Supply chain planning includes Sales Forecasting, Distribution Planning, Production Planning and Procurement Planning. It is also critical to integrate them by implementing the Sales & Operations Planning process.
Together, equipped with knowledge, determination, and mutual support, all members can become the real-life Super Heroes of the Supply Chain!
If you are interested in understanding more about achieving Supply Chain Excellence through Collaborative Sales Forecasting, register to our upcoming webinars