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What’s coming in the way of making our Supply Chains more agile?
Supply chain disruptions are here to stay. Their frequency and intensity are, in fact, increasing. Supply chains need to get consumer-driven and agile to navigate these disruptions.
The good news is that most leading companies have understood the need to change and are on their way to making their supply chains more agile.
While implementing the key concepts of agility, we should constantly look out for bottlenecks which slow down the beneficial impact of agility. How do we identify the bottleneck and correct it?
Companies normally start with making their supply planning more agile. This is done by implementing Demand Sensing and improving the frequency of planning.
Bottlenecks usually occur in execution. While demand latency is reduced by Demand Sensing and planning latency is reduced by improving frequency of planning, execution latency becomes the bottleneck.
Imagine sensing demand every day but dispatches taking 2 days of turnaround time at the loading point!