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Do you witness a gap between your Supply Chain planning and execution?
Moving to an agile and demand driven supply chain requires a redesign of various supply chain processes. Many companies go through the redesign process but fail to see the expected business benefits. Why is that?
The root cause often lies in execution slips. It is important that supply chain execution keeps pace with the redesigned processes. For example, if we go for a more frequent demand sensing, demand prediction and replenishment process, the backend processes in logistics, production and procurement must improve their responsiveness as well.
If we continue to see frozen production schedules, inflexible purchase orders and dispatch delays due to non-placement of vehicles, the benefits of frequent planning are unlikely to materialize.
At the time of redesigning the supply chain for agility, we should look at the execution processes and make them agile as well.