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Does replanning cause inertia in your Supply Chain team?
Most supply chain teams have an inertia towards replanning. It takes extra time and effort. Planning once a month is a job in itself. Why indulge in replanning?
Teams prefer to somehow fit execution into the monthly plan. Since final consumer demand rarely matches the original monthly plan, they either dampen the flow by curtailing supplies or try to increase flow beyond what is required by consumers. These actions lead to stockouts and surplus inventory in the system.
If you want to minimize stockouts and surplus inventory, attack the root cause. Make it easier for the planners to replan, in line with the actual demand. Make it easier for the execution team to follow the updated plan.
Inertia is the silent killer of supply chain effectiveness…