Forerunners Consulting’s Post

It can be a real challenge to correlate pain to root cause when it comes to supply chain challenges. Check out the breakdown below to help understand where you might evaluate root causes that exist in your legacy planning capabilities.

‼When vou leave gaps within your company's supply chain process🤭😄 These could be due to a variety of factors such as lack of communication, poor inventory management, or inadequate logistics planning... 5 Solutions to Put the Puzzle Together 1. Place buffers along your supply chain 2. Diversify your manufacturing and sourcing network 3. Invest in demand forecasting 4. Standardize your processes 5. Be Responsive 👍

What Is a supply Chain? A supply chain encompasses a network of interconnected entities, ranging from manufacturers and suppliers to transporters, warehouses, retailers, and even the end customers. It's not just about producing and delivering goods; it's about coordinating every aspect involved in meeting customer demands. Within each organization, whether it's a manufacturer or a retailer, various functions collaborate to ensure seamless operations, including product development, marketing, operations, distribution, finance, and customer service. Let's delve deeper into the fascinating dynamics of supply chain management together!"

I totally agree with you Professor and additionally agree that Supply chain planning is a critical aspect of efficient operations, and avoiding common errors which can significantly impact a company's success. The following are some of the best practices and pitfalls to avoid in my experience because Supply chain planning is a continuous process. Regularly reviewing and refining your strategies to staying agile and responsive to market dynamic will yield excellent results. 1. Demand Forecasting Accuracy:   - Embrace: Invest in robust demand forecasting models. Accurate predictions help prevent stockouts or overstock situations.   - Avoid: Relying solely on historical data without considering external factors (e.g., seasonality, market trends). 2. Collaboration Across Functions:   - Embrace: Foster collaboration between procurement, production, and logistics teams. Cross-functional alignment ensures better planning.   - Avoid: Siloed decision-making, where each department operates independently. 3. Safety Stock Optimization:   - Embrace: Calculate safety stock levels based on demand variability and lead times. It acts as a buffer against unexpected disruptions.   - Avoid: Setting arbitrary safety stock levels without data-driven analysis. 4. Inventory Segmentation:   - Embrace: Classify inventory based on value, demand patterns, and criticality. Prioritize planning efforts accordingly.   - Avoid: Treating all inventory equally, leading to inefficient allocation of resources. 5. Scenario Planning:   - Embrace: Create "what-if" scenarios to assess the impact of different supply chain disruptions (e.g., supplier delays, natural disasters).   - Avoid: Assuming a linear supply chain environment without considering uncertainties. Avoid These Common Supply Chain Planning Errors: 1. Over-Optimizing Inventory:   - Avoid: Excessive fine-tuning of inventory levels. Strive for a balance between cost savings and service levels.   - Embrace: Use data-driven approaches to find the optimal trade-off. 2. Neglecting Lead Time Variability:   - Avoid: Ignoring variations in lead times from suppliers. Plan for worst-case scenarios.   - Embrace: Incorporate lead time variability into your planning models. 3. Ignoring Seasonal Demand Patterns:   - Avoid: Treating all months equally. Seasonal products require different planning approaches.   - Embrace: Adjust forecasts and inventory levels based on seasonal fluctuations. 4. Inadequate Risk Management:   - Avoid: Not identifying and mitigating risks (e.g., geopolitical issues, supplier bankruptcies).   - Embrace: Develop risk mitigation strategies and diversify suppliers. 5. Static Planning Models:   - Avoid: Relying on fixed planning parameters. Supply chains are dynamic; adaptability is crucial.   - Embrace: Use dynamic models that adjust to changing conditions.

Attention supply chain planners! Did you know that planning errors can lead to the opposite of the expected effect? In fact, wrong planning can actually lead to increased inventory. As a result, it's crucial to be careful when it comes to supply chain planning. Plan too little, and your company could lose sales. Plan too much, and you'll end up with excess inventory. Make sure to pay close attention to your planning to ensure optimal results! #supplychainplanning #inventoryreduction #saleslossprevention #smart #makeithappen

The market issues demand and each organisation must do its best to fulfill it with its productive capacity. For operations managers, being ready in the right place at the right time (with the right capacity, inventory, people, and resources to be able to satisfy market demand) is where they "bring home the bacon"! #OperationsManagement #BusinessOperations #MarketDemand #ProductionCapacity #SupplyChain #BusinessStrategy

Changing from a yearly budget plan to a revolving monthly sales & operations plan offers numerous advantages: - Faster reaction to shifting customer demands. - Improved capability to adapt to seasonal demand fluctuations. - Enhanced ability to integrate new product developments seamlessly. - Deeper understanding of the market dynamics. - Enhanced budget control. Embracing supply chain planning yields significant benefits. Consider incorporating this process into your supply chain operations. #supplychain #sales #operations #planning #businessbenefits

Thought of the day! Demand planning is good, but fulfillment is fun. 📈➡️📦 In the world of supply chain management, demand planning challenges our strategic thinking and forecasting skills, ensuring we’re prepared for future needs. But it's in the fulfillment phase where the magic happens—seeing plans come to life and products reaching customers, providing immediate satisfaction and tangible results. Embracing both aspects makes for a rewarding journey. #SupplyChain #DemandPlanning #Fulfillment #Logistics #CustomerSatisfaction"

Retail Today talked to C.H. Robinson 's Noah Hoffman, CSCP about the potential for dynamic forecasting to improve supply chain management, and why connecting your purchase order management to your freight transportation management can be a smart play. #innovation #management https://bit.ly/3WefYJ8

Master the Retail Supply Chain: Your Path to Success #SupplyChain #RetailSupplyChain #LogisticsCosts #GeopoliticalRisks #SupplyChainExperts #SupplyChainResilience #SupplyChainManagement #SupplyChainLogistics #LogisticsManagement #SCMJobs