How dynamic are your inventory buffers?

A key initiative to make supply chains far more responsive is to deploy Demand Sensing at the front end and couple it tightly to the replenishment algorithm.

Demand Sensing module senses demand on an ongoing basis at the most granular level, which can be used effectively to set the inventory buffers. As we get more demand data, the inventory buffers would be recalibrated.

Consumer companies at the leading edge of this remarkable technology advancement have moved to daily refresh of inventory buffers. This ensures that supplies are in a continuous sync with the emerging demand, avoiding both stockouts as well as excess inventory.

Whatever is the current frequency of your inventory buffer refresh, I would suggest increasing it to make the supply chain more responsive, and the best way is to incorporate demand sensing in the supply chain planning and execution.