How do you plan for demand when every order is custom? In this episode of Supply Chain Chats, Lisa Anderson sits down with Diane Garcia, LMA Senior Associate, to break down Demand Planning for Custom Manufacturing.
Manufacturers are focused on successfully navigating continually changing conditions to serve customers while driving profitable growth. End-to-end supply chains are evolving, creating shifting demand patterns and customer order volatility.
Fulfilling customer demand successfully is not as easy as it was prior to this volatile, uncertain, complex, and ambiguous (VUCA) environment. As supply chain disruptions continue to rage, planners jump through hoops, expedite, and are a bit frazzled trying to support customer requirements while meeting operational objectives, pushing back when needed on sales commitments, and addressing cost concerns.
As revenues remain volatile, disruptions plague supply chains, and interest rates remain high, executives' ability to build revenue, margin and working capital predictability and improvement takes on an elevated importance.
Industrial manufacturers are experiencing slumps across the board. The good news is that customers are not canceling orders; however, they are delaying BIG TIME.
Disruptions abound no matter the supply chain. Aerospace has been particularly hard hit. Boeing's issues have plagued them the entire year.
As geopolitical and economic risks rise, executives become more concerned. Proactive clients are taking action to boldly invest where it makes sense while aggressively focusing on inventory and cost reduction of non-value added items/ work and also ensuring high customer service levels.
Turbulent times are upon us. According to Reuters reporting from the Bank of America, geopolitics has leapfrogged inflation as the most significant risk to the market, and that was proven true as the market slumped with the expectation of Iran's attack on Israel.
If you follow the stock market, you might think the economy is strong. As consumers, we are frustrated with the price of everyday supplies such as food, gas, and housing.
There is such a wide range of shocks that can happen to your supply chain and to the demand for what you’re making. Can you ever truly prepare? What kinds of projections are most useful, and how can you set yourself up for success if you do have the ability to anticipate a surge in demand?
