The 3 Planning Tactics that will Swiftly Improve Your Material Supply
Your Solution to the Supply Chain Shortage
The recent supply chain shortage struggle has been causing many industries to feel the pinch, as the disruption of global trade routes and lengthy delays in product shipments have made it increasingly difficult to maintain production levels. The problem has been compounded by the pandemic, which has further disrupted already fragile global supply chains.
The issue is beginning to cause a ripple effect in many industries, from consumer goods to pharmaceuticals and medical supplies, resulting in shortages of key items that are essential for everyday life. Companies are struggling to keep up with demand as they face delays in orders from their suppliers or find themselves unable to access certain components or materials due to supply shortages.
So what can be done to combat this? A recent study at Gartner concluded that:
CSCOs (Chief Supply Chain Officers) must prioritize improving communication and collaboration between all parties involved in demand and supply planning, procurement, and suppliers.
The CPFR (Collaborative Planning, Forecasting, and Replenishment) forum should be utilized to its full potential to uncover any opportunities to maximize the strength of the current supply network.
Demand segmentation should also be used for two primary purposes: identifying high-value SKUs that could benefit from further investment and differentiating low-volume SKUs that can be challenging to forecast correctly.
These steps will lead to more consistent service levels with less excess inventory throughout the entire chain. Furthermore, having better alignment between plans and MOQs (Minimum Order Quantities) will make it easier for everyone involved in the process, allowing them to reach a higher level of efficiency.
We are living through an unprecedented era where global logistics and ceasing international borders have presented unique challenges that were unheard of before this pandemic began. But despite all these difficulties, companies must still try to find solutions to continue operating despite these unprecedented events if they want to keep up with customer demands and avoid losses down the line.
For additional information or recommendations, reach out to Critical Risk Solution to schedule a consultation today. Our team will be happy to help you design a strategy to overcome these challenges so that you can continue to grow your business.
