Lean Supply Chain – Chalenges

To understand the issue in the supply chain it is necessary to look back of the relation between customers (OEMs) and their suppliers. The frequency of product ordering from OEMs to all suppliers is regularly a few times per week with a time window for a longer period of three or more months. The order contains delivery schedule: date of delivery and ordered quantity. Due to the unstable supply situation on the market the fluctuation in orders is extremely high. The situation requests heightened attention to Logistics staff in every company (Tier one and Tier two suppliers). The production and material planning must be aligned with customer orders to avoid goods inventory raising. Every overproduction or overmaterial ordering reflects to company losses – read about 8 wastes. The production plan at the supplier site must be adjusted constantly after every change in customer orders (postponement of delivery or reduced quantity in delivery schedule). It reflects to material planning and adjustment of orders from Tier one suppliers to sub-suppliers.

The overs stock, which represents excess inventory in contemporary business, not only ties up valuable resources but also hampers cash flow and profitability. Recognizing this, Logistics staff assume a critical leadership role, particularly during times of crisis. Their technical and analytical skills are now more crucial than ever as they navigate through supply chain disruptions, optimize inventory management, and make data-driven decisions to minimize costs and maximize efficiency. In the face of unpredictable market conditions, the ability of Logistics leaders to effectively assess and mitigate risks, streamline operations, and adapt quickly becomes paramount. By leveraging their expertise and taking proactive measures, these leaders can help organizations overcome challenges, maintain uninterrupted supply chains, and emerge stronger from crises.