Manufacturing and supply chain expert Lisa Anderson, MBA, CSCP, CLTD, known as the Strongest Link in Your Supply Chain and president of LMA Consulting Group Inc., sees inventory tightening as supply chains grapple with demand fluctuation, supplier challenges, stagflation, and volatility in the economy. LMA Consulting Group works with manufacturers and distributors on strategy and end-to-end supply chain transformation to maximize the customer experience and enable profitable, scalable, dramatic business growth.
“The supply chain has been front and center since the beginning of the pandemic when toilet paper highlighted the importance of a reliable supply chain. Volatility in supply chains has caused chaos in every industry. Now, the emphasis is on inventory. Building inventory was important when supply chains were trying to regain a semblance of order. Yet, in haste to build inventory, sometimes the wrong inventory was increased, the right inventory was in the wrong place, profitability was sacrificed, or all the above. Whatever the situation, inventory is now a key focus,” Anderson says.
Learn more from Lisa Anderson when you attend “An update on supply chain challenges, opportunities” webinar taking place Wed., Dec. 7, 2022 at 12PM ET.
Organizations are taking a hard look at existing inventory, customer demand and profitability to remedy and balance inventory. “Companies need to reshape their operations and supply chains by right-sizing inventory levels. The trick is to cut inventory without impacting customer service or cutting performance or profitability. Volatility in the economy will be the reality for the foreseeable future. Those who have processes in place to evaluate customer demand, create accurate forecasts, position capacity and plan production to capitalize on opportunities that exist will have a huge advantage,” she says.
Anderson and her firm use the SIOP process to capitalize on opportunities while maintaining organizational alignment. “Pencils and erasers, excel spreadsheets, and gut instincts no longer work. Manufacturing today is complex. Customers are sophisticated. Their needs and wants change depending on the end user. It is up to manufacturers to anticipate change, plan for it, and be able to change at a moment’s notice. Processes can provide data, consistency, and order to the many moving parts in the supply chain,” she concluded. Supply chains are sophisticated and ever evolving. Anderson provides supply chain updates through Supply Chain Chats, a series of short videos that address current topics, issues and challenges related to supply chains.