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Are Supply Chains really like a human body?
Supply Chains have often been compared to a human body. Its organs and subsystems are interdependent. Local optimisation of any single subsystem can damage other organs and can be disastrous, even fatal. Any initiative to improve its performance must consider it as a full system.
A vital and defining part of the human body is its sensory system. We have five senses of sight, sound, smell, touch and taste. These senses are ‘always ON’. Can we even think of surviving without these five senses?
Supply Chains also have sensory organs. We do sense demand, either through direct consumption or its manifestation as consumer purchases. We do listen to consumers, either directly or through their online conversations. We do watch consumers shop.
The key parameter that defines a well-functioning supply chain system is the frequency at which we turn these sensory organs ‘ON’. Is it monthly? Is it daily? Is it hourly?
The whole science and practice of Demand Sensing has been built on this concept, to make supply chains agile and effective, just like a healthy human body!