4 mistakes made while designing your supply chain
Conventional wisdom leads many managers to focus primarily on operating their business as efficiently as possible. They believe they can be most successful if they strive for high product volume, top product standardisation and a continuous process. However, turbulent and misunderstood demand left them with excess inventory.
1. Downstream demand is usually accumulated and presented as an aggregate total.
2. There is too much delay in initial demand from actual customer.
3. Downstream service level needs are an average.
4. We expect upstream supply to be at a 100% service level.