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Big improvements in Supply Chain need only small changes.
Leading companies normally have well-structured supply chain processes. These are consumer centric and have worked for a long time. There is no need to make dramatic changes to these processes.
Some of the processes, however, haven’t possibly kept pace with the changing context, which causes a mismatch between demand and supply and leads to stockouts and surplus inventory. All we need is to just sharpen these processes.
For example, companies do listen to consumer feedback, track their purchases and use this information for supply planning. These processes are often run with a monthly cadence. Improving its frequency can do wonders in aligning supplies with demand.
Monthly Demand Forecasting morphs into daily Demand Sensing. Firm schedules yield to flexible schedules. Complex optimisations yield to simpler heuristics understood by the operating team.
Sharpening the current processes is much easier for the operating team to comprehend and follow than major changes which disrupt their current way of working.