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Minimize stockouts through an Agile Supply Chain.
Supply chains work on the twin objectives of improving product availability and product freshness. There are several models in the market to improve either availability or freshness. These models typically operate like a see-saw, optimizing availability and freshness through inventory modelling.
The down side of these widely available models is that improving availability often impacts freshness adversely. If we focus on improving freshness, it often results in higher stockouts.
What’s the way out?
The right way to improve both availability and freshness together is by minimizing the delay between demand changes and the requisite supply response. We need to synchronize supplies with demand dynamically and in real time.
To put it simply, we need to keep a hawk’s eye on emerging granular demand patterns and improve responsiveness of the backend operations.
Demand Driven Supply Chain with a Demand Sensing capability is the way to go… You will be pleasantly surprised by the results!