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How do we make Supply Chain planning more agile?
While discussing supply chain agility, most teams focus on execution… how to make it more flexible and responsive. While these are important in embracing agility, it misses an important point.
Agile execution based on stale and inflexible demand plans can be disastrous. It ends up accentuating inventory mismatch, manifesting as stockouts and surplus inventory.
The first step in driving agility is to make planning more agile. Demand plans shouldn’t remain static over the month. We get so much of rich demand signals every day, should we just ignore it? Of course not.
Planning can be made more agile by increasing the frequency of demand refresh. We should use the rich stream of incoming demand signals to refresh the demand outlook continually. Let’s learn from Google Maps where this refresh process is no longer periodic but continuous.
Just make this one change and you will be pleasantly surprised by the results…