Email
sinha.rk.dr@gmail.com
Embrace uncertainty.
The evolution process has wired our brains to think of uncertainty as fear, which possibly explains why so many supply chain professionals are averse to uncertainty in their planning process. They try to impose certainty on inherently uncertain situations.
We know that future demand will continue to be uncertain. Forecasting it in terms of a single number is nothing but an attempt to impose certainty on it. Does it help? While it does make the life of execution team members easier, its adverse impact on business performance is quite high. Is there a way out?
The solution lies in accepting reality as it is and embracing uncertainty. However, we must remove the linkage of uncertainty with fear. This can be done through managing strategic inventory buffers and establishing a fast feedback loop to synchronize supplies with demand.
We can design the entire supply chain to embrace uncertainty without causing fear. Are you game for it?