Are We Asking the Right Questions? Beyond Buzzwords…
Today’s buzzword is Visibility. Every business leader says that we need better visibility. Therefore, the rest of us run off searching for better visibility.
December 22, 2021
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Today’s buzzword is Visibility. Every business leader says that we need better visibility. Therefore, the rest of us run off searching for better visibility.
In traditional MRP, we start with a prediction of demand called a forecast, which is typically a range. We are forced to choose one single number to represent that range which we then input into a complex calculator.
I asked a group of supply chain purchasing and planning professionals a simple question. I asked them how they decide just when to place an order and just how much.
It’s time for a change. Recruiting means you are actively “selling” your company to the prospective candidate.
Reduce Inventory, they said. And they’re still saying it. We’ve been working on the same things for decades. How is it possible that we are chasing the right things, but not achieving the goal?
If you have product available, then sales will result. You will only maintain that level of sales if you have the capability to produce to the customer demand. And if you produce only what the customer is buying, then you will have the money to pay bills, including worker salary.
When trying to implement a culture change or a lifestyle change or any kind of a change, you need to be intentional.
Typically, your family uses three eggs per day, so you set a safety stock level of six (two days worth). This means you never intend to have less than six eggs. That way, you should not have to rush to the grocery store just because of eggs.
Sometimes Supply Chain feels harder than Mission Impossible. Is five seconds really enough warning prior to something self-destructing?
