5 For Agility
Supply Chain agility keeps coming up especially in these last few weeks. As more of the population gets vaccinated, and people begin to resume pre-Covid activities, we are starting to see the initial movements of the consumer “pent up demand” that has been circulating in discussions. The wild ride for supply chain continues. How does a supply chain adapt to a halted market (April 2020) to a volatile one (the last year entirely), to an explosive one (possibly now)?
Finding and maintaining the exactly correct amount of inventory at the exactly correct time at the exactly correct price is the target for supply chain people. A moving target for sure. There are many formulas and theories on this, but the one that time and again yields success is Agility.
The ability to turn on and off the supply at a moment’s notice, to have inventory where it needs to be and when. Agility agility agility.
Being agile looks different in different industries BUT here are some suggestions on how to achieve a more flexible and responsive supply chain:
Partner with your suppliers and get familiar with their production processes. There may be ways to pause the build mid-way for late stage customization or faster order fulfillment later.
Double or even triple source your top items. This is a biggie, do not make yourself at the mercy of one partner on your top items. If the manufacturer suddenly closes where does that leave you and your Team?
Understand your inventory deeply. Where is there risk? What SKUs are harder to produce than others? What inventory strategy should be used on each type of SKU?
Launch SKUs always with the end in mind. If a SKU’s demand suddenly disappears- can you repurpose your inventory? Think of flexibility from the get go.
Source as local to your demand as possible. Especially in the age of stretched resources for freight, the less you have to travel to get your products to your customers, the better for everyone… including our planet.
Hope you find some ideas or inspiration in this article to guide your supply chain to a more agile state and wish you and your Team a productive and smooth new season!