In the short term, historic order patterns will not be sufficient to run the supply chain.
That is a quote from a guest post at SparePartsKnowHow by Michael Worden, CEO of Right Sized Inventory.
In this article Michael discusses the impact of the current global crisis on supply chains, the way that current 'replenishment signals' may now be misleading, and how companies can reduce their risk and enhance their responsiveness.
Here is another quote:
...the resuscitation of our global supply chain will most certainly be a daunting task and an effective recovery will potentially require companies to redesign their network.
This can involve significant operational risk.
Essentially this tells us that, after the pandemic, business as usual may be the riskiest strategy!
This is an article that you really need to read.
Here is a link.
bit.ly/ReducingRecoveryRisk
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ICYMI: As a service to our community during the current global crisis, we are now providing our Basics of Spare Parts Management Course free of charge.
No credit card required. No charges. No catches.
This course is in keeping with this month's theme: Deciding What to Stock, as module 2 of the course covers Critical Parts and Stock Level Decision-Making.
Deciding what to stock, and how many, is the fundamental question for inventory management. This is the core activity that determines availability, overstocks, and ultimately obsolescence.
Click here to learn more and to register
