Critical strategies for building an agile supply chain driving one synchronised view of demand

By David Johnston, senior vice president supply chain, JDA Software.

In today's business environment, industry experts acknowledge that supply chain resiliency and agility provide a significant competitive advantage. A recent Aberdeen Group study found that over the past year, 58 per cent of companies suffered financial losses as a result of supply chain disruptions. The same study showed that best-in-class firms have made more progress in improving supply chain processes and infrastructure to respond better to potential disruptions1. There are several effective strategies companies must adopt in order to minimise risk, reduce working capital, improve customer responsiveness and bulid a more resilient and agile supply chain.

Adopt a 'Pull' Approach to Demand Management
The supply chain battle has intensified in the face of global competition, volatile economic conditions, localised market events and rapidly changing consumer buying behaviors. Consumer Goods (CG) manufacturers are challenged with achieving accurate forecasts to meet demand while their retailer customers are engaged in their own competitive struggles and are less tolerant of late deliveries and out-of-stocks. At the same time, inventory and operating costs continue to increase in the wake of mitigating the risks associated with elongated supply chains and volatile input costs.

Source: http://www.logisticsit.com/ (Manufacturing & Logistics IT Magazine)
URL: http://www.logisticsit.com/absolutenm/templates/article-supplychain.aspx?articleid=5559&zoneid=5