![]() Supply chain organizations can reinvigorate their missions by adopting innovations that contribute to the efficiency and agility of company operations even in these difficult times. There’s another way of looking at the predicament facing today’s supply chains, one that finds in the current situation an opportunity to go in a different direction. But they did it because they couldn’t balance capital and risk decisions effectively. “Supply chain managers understood that that they were tying up their company’s working capital and warehousing space to keep excess inventory. “It's really what everyone did,” says Paul Noble, founder and chief executive officer of Verusen, a materials intelligence company. After all, they say, they need insurance to protect against elevated risk. In the last few months, a two-headed monster of spiking inflation combined with fears of recession has emerged to complicate the situation even further.įor some supply chain managers, the upheavals of recent years have justified their entrenched approach of relying on excess inventory as an insurance policy. ![]() The COVID-19 pandemic brought on supply and demand whipsaws, and the war in Ukraine bought chaos to supply chains. It’s only gotten worse in the last couple of years, when supply chains have been challenged as never before. But at what cost? And is there an alternative? It became the default strategy for many a supply chain manager: accumulating inventory to ensure that the company’s own needs and those of its customers were met. But over the years, inertia set in, and supply chain managers relied on tired old strategies instead of attempting to come up with new ones. Supply chain management is a discipline that came about to streamline the materials management process. ![]()
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