The financial crisis of 2008/2009 showed the weakness of many companies in synchronizing their supply chain. The massive decline in sales posed big challenges to manufacturing companies. Existing issues in supply chain management surfaced and the priority was to adapt supply chain output fast to changing market conditions.
As the current business climate continues to improve, it is essential to learn from the crisis and ensure that your supply chain output is synchronized to your sales development. You want to make sure you do not over-produce and be left with unsold stock. At the same time, you do not want to miss market opportunities. Ideally, you want to balance both risk and opportunity. This involves synchronizing your supply chain through appropriate processes, governance and organization as well as supportive IT systems.
How BearingPoint brings value
We focus on three pillars for supply chain synchronisation:
Providing transparency is the first step in attaining supply chain synchronization. Transparency on stock, order and supply volumes gives the supply chain manager crucial information on the current business situation so they can make educated judgments on replenishment volumes and required capacities.
A planning process that incorporates market information in a timely fashion while also allowing for flexibility is the cornerstone for synchronization with market demands.
Using market demand figures to pull activity throughout the supply chain enables the synchronization of not just the final product assembly operation but also the preceding tiers in production and purchasing.