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7 Supply Chain Complexities and How to Address Them

The document outlines various complexities in supply chain management, including supplier delays, inventory issues, and data inaccuracies. It provides solutions such as building resilient supply chains, implementing robust inventory planning, and enhancing data governance. Additionally, it emphasizes the importance of aligning stakeholder priorities and improving visibility to mitigate disruptions and improve overall efficiency.

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arissa
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12 views

7 Supply Chain Complexities and How to Address Them

The document outlines various complexities in supply chain management, including supplier delays, inventory issues, and data inaccuracies. It provides solutions such as building resilient supply chains, implementing robust inventory planning, and enhancing data governance. Additionally, it emphasizes the importance of aligning stakeholder priorities and improving visibility to mitigate disruptions and improve overall efficiency.

Uploaded by

arissa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Supply

Chain
Complexities
andHow to
Address Them

SWIPE
The unexpected happens
(almost every time)
Supplier delays, machine
breakdowns, changes in demand;
disruptions are inevitable

!
How to fix: Build a
resilient and agile
supply chain with risk
mitigation strategies
and plans
The inventory beast
Too many SKUs, stockouts,
excess inventory that translate
into losses and cash trapped
How to fix:
Implement robust
inventory planning in
S&OP context,
segmentation, and
demand-driven
replenishment
Demanding stakeholders
with competing priorities
Sales wants inventory availability,
finance wants lower costs,
operations wants efficiency

How to fix: Align


? !
through S&OP,
balancing service
levels, costs, and
operational aspects
Abundance of
inaccurate data
Forecast errors, wrong lead
times, messy BOMs. This bad
data leads to bad decisions.
How to fix: Prioritize
data governance, master
data management, and
data validation
Predicting
future demand
Past trends don‛t always predict
the future, and external
factors keep changing the game

How to fix: Use a combination


of statistical forecasting (when
it works), market intelligence,
AI-driven insights, sales and
marketing inputs
Everything is
interconnected
The domino effect is in full
force. A supplier delay
translates into missed shipments
and unhappy or lost customers.
How to fix: : Improve visibility
and understand the impact;
build and run an effective
S&OP and S&OE (sales and
operations execution)
Minor errors cause
huge catastrophes
A small miss can lead to
massive disruptions
How to fix: : Strengthen
process controls, automate
where possible, and promote a
culture of proactive
problem-solving and
continuous improvement
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M arcia W illia
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