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How Organizations Are Evolving to Limit Supply Chain Impacts

How Organizations Are Evolving to Limit the Supply Chain Impact

With current supply chain issues, goods and materials have been delayed, causing issues both at home and in the business world. This impacts shipping lead times and pricing due to supply and demand issues.

Companies that manufacture materials need supplies to do their manufacturing. When their supplies or the shipping is disrupted, it causes manufacturers to shut down their lines because they can’t make their product. The supply chain needs to be managed tighter than ever before because business depends on it.

Manufacturers and distributors have had to reevaluate their approach because they must be more dependent on their systems. They need to be more on top of inventory and know what materials they have on hand.

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These inventory issues are what results in longer “lead times”. Lead times are the amount of time that is prepped for shipping materials. Manufacturers must plan for these farther in advance than ever.

These manufacturers used to be able to rely on gut feelings, but recent times have changed that. They must do a better job at keeping track of planning metrics. Getting control over planning data. In the past, much of this data keeping was done by hand, but that is no longer the case as it has become much more digitized.

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They must also remove any inefficiency in their process. This is mostly done by getting new technologies involved. Things like barcoded and reduced transit times are essential as they keep things more accurate.

The intent is to get accuracy overall. To achieve this, you must have accessible data.

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Authored by: Dr. Bryan Bechtoldt, EdD

Authored by Dr. Bryan Bechtoldt, EdD

Bryan is the President and Principal for SVA Consulting, LLC, a member of the SVA family of companies. In his role, Bryan works with SVA’s clients to help them prepare their organization for transformation through shaping vision and development of implementation strategies.

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