Elemica recommends adapting to a market driven supply chain
To be more competitive, companies need to take a customer centric ‘outside-in’ view, according to supply chain optimisation specialists Elemica,
According to Elemica, companies will want to take steps beyond their four walls to better support the varied and specific needs of their individual customers, while also ensuring their supplier and logistics service provider strategies best support this objective.
“Market driven supply chains are designed around the needs of the customer and emphasize demand sensing, flexibility, and driving intelligent, fast responses,” says Rich Katz, Chief Technology Officer for Elemica.
“An outside-in approach allows our customers to eliminate lost sales because they may not have otherwise been able to properly anticipate demand. It also helps maximize their profits by keeping them from carrying too much inventory.”
Market driven supply chains are real game changers. Business is transformed when manufacturers, and all their trading partners, collectively sense and properly respond to supply and demand changes in the market. When visibility across the entire supply chain is realized, a company better understands where and when to source their raw materials, where to store their inventories, mitigate delays in shipments, and optimally scale production to meet real market demand.
“To achieve the competitive advantage a market driven supply chain offers, businesses must automate customer-driven processes and scale them across as many trading partners as possible, creating a massive network of partners with whom to conduct business,” adds Rich Katz. “An outside-in supply chain means a business will be proactive instead of reactive, better respond to market volatility, and have total flexibility to meet the specific needs of each individual customer of theirs.”