important buffer. Focus on form and function of inventory to design buffer strategies. In product flows
with high error, hold inventory in raw and semi-finished states. Where possible, implement
postponement strategies.
Simplify. Reduce the long tail of the supply chain and work on platform rationalization. Make the work
systemic as a part of the S&OP process.
Focus Less on Integration and More on Data Portability. Tight integration reduces agility. Instead,
focus on the synchronization and harmonization of data and improve data portability in network
strategies for demand, supply and product flows. Implement ISO-8000 standards for master data
portability. Work on sharing clean data with trading partners.
Build Supplier Development Programs. To help sourcing flexibility, share data and build programs
with suppliers that reward agile supply. Focus on being a good trading partner.
Conclusion Volatility is increasing. Supply chains are more complex and changing. As a result, the efficient
supply chain is not always effective. To deliver customer reliable customer service, companies need
to deploy agility tactics.
Additional Reading: Readers may gain added value by accessing complimentary reports on the Supply Chain Insights
website:
Driving Digital Transformation
Supply Chains to Admire 2018
Supply Chains to Admire 2017
What Drives Inventory Effectiveness in a Market-Driven World?
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