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How does it feel to drive on a bumpy road?
Running a supply chain is like driving on a bumpy road, full of surprises. The bumps are only expected to increase, as disruptions get more frequent. Is your team getting stressed navigating it?
What we need on such bumpy roads are good shock absorbers, which can take most of the jerks and ensure a relatively more comfortable ride for the passengers. If the shock absorbers are either not properly designed or not properly maintained, passengers will feel the jerks.
Inventory buffers in supply chain serve the purpose of shock absorbers. These must be properly designed to absorb the supply chain noise, which can be on either the demand side or the supply side. These should also be maintained properly, through dynamic resizing, for them to be effective.
Properly designed inventory buffers give peace of mind to the supply chain team, so that they can focus on signals instead of just responding to the noise.