WK #4 (SC): The New Supply Chain Paradigm |
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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…
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Historical developments, Cumulative decisions
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Old business model, and
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Old environments.
The New Paradigm for the Supply Chain is that it must meet
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Highly Unpredictable demand
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Unreliable Forecasting (if any)
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Relentless price pressure
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JIT Demand – Smaller lot/release sizes
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Shorter Replenishment cycles
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Shorter product life cycles
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Greater Risk of Inventory obsolescence
The new Supply Chain must accommodate these realities……
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