How to Enable a Proactive Supply Chain
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Tomorrow’s supply chains will be intertwined supply networks predicated on responding to supply and demand changes as they happen, not after the fact. Transaction and shipment exceptions are common, so businesses must be able to account for these variables by enabling a proactive supply chain. When problems occur, the earlier and faster information is communicated to partners, the better they can work toward finding an efficient and economical resolution.
Every transaction involves at least two parties— buyer and seller. But many others have a stake in its success, including raw materials suppliers, contract manufacturers, 3PLs, carriers, and freight forwarders, among others. Changes can come from either direction and from any partner: a spike in sales demand can trigger an inventory shortage; a fire in a supplier’s warehouse can shut down a production line; over-production and slack sales can create overstocks. When supply and demand fall out of sync, companies and their supply chain partners have to make quick, informed decisions to resolve the problem.
In a proactive supply chain, the end user is in a position to immediately address supply and demand shifts before they become critical.