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WK #4 (SC): The New Supply Chain Paradigm PDF Print E-mail

The Supply Chain for most organizations requires a change from the previous tactical reality based on history to a strategic tool based on the needs of the business structure.

The Current Supply Chain Structure for most organizations reflects…

  • Historical developments, Cumulative decisions

  • Old business model, and

  • Old environments.

The New Paradigm for the Supply Chain is that it must meet

  • Highly Unpredictable demand

  • Unreliable Forecasting (if any)

  • Relentless price pressure

  • JIT Demand – Smaller lot/release sizes

  • Shorter Replenishment cycles

  • Shorter product life cycles

  • Greater Risk of Inventory obsolescence

The new Supply Chain must accommodate these realities……

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