Eye on the Supply Chain Prize
Why does a project-based approach fall short? The simplest answer is the same reason why businesses launch these projects: customers. As much as we love them, today’s consumer creates chaos. You can’t blink. Habits and trends in consumer appetites change far quicker than most supply chains can handle. This puts operations in an upheaval and can tear down forecasts overnight (for good, bad, or otherwise).
Traditional supply chain strategy lays out a five-year vision that forecasts cost, consumer demand, throughput, and other parameters as needed by the business. These cycles offer valuable far-sighted roadmaps, milestones, and KPIs. But, consumer trends change on far shorter cycles. Building in a short-horizon layer to compliment a long-term vision helps businesses react to market conditions that come in three, six, or nine-month windows. This requires predictive demand planning and warehouse management systems nimble enough to pivot with the market.
First, you build the roadmap. Then, you build a culture and DNA of responsiveness into your supply chain operations. This not only achieves operational excellence for today’s challenges – you also build resiliency and agility into operations that lasts.
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