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Vendors are more flexible than we assume.
I was working with a medium-sized FMCG company. The procurement function had conventional processes like monthly orders on vendors. As a part of the first phase of DDSC implementation, we discussed the benefits of moving to weekly ordering to ensure that supplies are matched more dynamically to the evolving demand patterns.
The first reaction from the team was ‘Our vendors will resist it as they need to plan their production and purchases more frequently’. I could notice a lot of inertia and a strong desire to maintain the status quo.
We finally decided to check this assumption by asking a few key vendors. All these vendors not only agreed immediately but also welcomed the move. When I asked them how it would affect them, the first reaction was that it would make their operations smooth and eliminate frequent firefighting. In fact, they were already working with several more progressive FMCG companies on weekly orders and experienced much less expediting.
We decided to pilot it and experienced smooth operations.
The key learning was to test out the assumptions our teams make in their day-to-day operations.