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Can Supply Chains get agile without Demand Sensing?
Supply Chain agility requires three main components.
The first one is to know how demand is shaping up and if there are any early signs of significant demand shifts or disruptions. We also need to scan for any significant demand drivers, either internal or external, coming within the RLT horizon. The faster we catch these signals, the more agile we can be. This is done through Demand Sensing.
The second component is responsiveness of backend operations. How fast can we adapt supplies to the new demand outlook? The faster we respond, the more agile we’ll be.
The third component is inherent flexibility of the backend operations. Can we reconfigure the supply mechanism quickly to be in the best position to service latest demand outlook? The more flexible we are, the more agile we’ll be.
While all three components are important, Demand Sensing is crucial to activate the other two while we still have time to respond.
In absence of Demand Sensing, there would be too much pressure on the other two to achieve the desired level of agility. While it can be done, I wouldn’t advise it.