When supply and demand variations are low then operational efficiency will became the key to successful supply chain. Production intensive industries can improve operational efficiency by optimizing the production process and eliminating non value adding activities. An important issue to keep in mind during supply chain design is visibility to actual demand from end users or customers. As we all know supply chain planning becomes difficult when the demand is unpredictable, Demand planning and its forecasting can stable the process, forecasting also help in stabling supply chain process.
Supply side risk management strategy
Supply risk management strategy: When the supply side uncertainty is high, risk pooling input materials can help; inventory can be pooled, shared and managed. We must maintain substitute materials and alternative suppliers are a time tested tactic used to manage supply side risk. Practice of allowing substitute parts or materials earlier during the design time is also a supply side risk management strategy famously called as “design for supply chain”. Firms in the downstream of supply chain use more custom parts to differentiate their products from their competitors. Special attention is required to maintain uninterrupted supply of such custom made parts critical to product differentiation. Various supplier relationship strategies such as controlling stake, partnership, future contracts and other supply hedges to secure steady supply of a critical parts.
Supply chain design is visibility to actual demand
For low value items like self service manuals and warranty cards, printing and packaging in multiple languages is an effective strategy for multinational and multi cultural supply chains. Opening online channels may work well for such items, Apple іTunеѕ site for іPоd is a notable example. Dell’s popular assemble to order process for PC manufacturing is a revolutionary example of supply chain design for demand volatility. Products with variable demand and supply can use a combination of above techniques. Collaborative demand planning and forecasting with buyers and collaborative planning with suppliers can maximize the value of overall supply chain.
Using Adexa’a demand planning and forecasting, you can improve your supply chain while helping you implementing Sales and Operations Planning smoothly.