Inbound/Outbound - Agile Supply Chain

• Unacceptable inventory performance – Co-existence of surplus and shortages acros the supply chain
• Unacceptable service level performance – resulting in poor on-time delivery or loss of sales
• High expedite-related expenses and waste – including premium freights

On one hand, there is a necessity to effectively plan in advance of real customer orders to order long lead time materials, incorporate sales and marketing data and plans, plan capital and staffing levels, and develop contingency plans for potential problems.

On the other hand

• Forecasts are not going to be very accurate
• The more detailed the forecast is, the less accurate will be the forecast
• As the time fence for forecast goes more into the future, the more the error will be.

The world has seen a revolution in the distribution and logistics between consumers and suppliers. Distribution and logistics are no longer the constraint worldwide. Now it is well known across the supply chain what is sold and when it has moved. A logistics company can provide real-time updates as parts move around the world. Ultimately, however, at the heart of any supply chain is manufacturing and, in most supply chains, it is several different manufacturing sites and processes that must be effectively coordinated and synchronized to bring a finished item into the distribution pipeline.