Supply Shortages of Continue during the Pandemic

Even after month 3 of the pandemic, we were still out of stock on Hand Sanitizers, Face Masks and Gloves because of supply shortages. This has engaged the American manufacturing machine into high gear.

With many Fortune 100 companies manufacturing masks, Gloves, and Ventilators, we may see the classic bull-whip effect on the supply chain. Out of stock for three months followed by excess supply?

We may be stocking in excess in the next months including toilet paper that will be in plenty of supply for the next few years.

I even saw a telecast of a global giant making masks in its Arizona facility with the President praising them generously. We are making the masks now for the next wave later this year?

It looks like Make to Stock is coming back as a solid supply chain idea.

Good bye JIT!!

Supply Chain Optimization? Crisis management?

To avoid such yo-yo in this process swinging from shortages to excess, companies should seriously look at the S&OP and implement an effective Sales and Operations planning process.

Dubbed as the IBP to integrate finance and marketing senior management, this process is rather people focused than tool-focused.

Get to know the key steps in implemneting the S&OP at https://valuechainplanning.com/domain/S&OP.