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Supply Chain transformation should start from the demand side.
Companies on their Supply Chain transformation journey are often overwhelmed with too many initiatives. Where should we start?
Let’s start from the basics and keep it simple. Supply Chain transformation aims at aligning supplies with demand, now as well as in future. We know that demand drives the entire process and supplies must match it.
Think of a dance floor. Demand is like the music beat, to which supplies should match their steps. It involves three main actions. Sense what the current beat is, be flexible to change your steps to match the beat, and respond to the beat changes as fast as possible to ensure you are in sync.
These three actions, therefore, define the main elements of Supply Chain transformation. Sense the demand well, be flexible in supplies, and respond fast to changes in demand.
Simple, isn’t it?