The global financial crisis of 2008-2009 put many manufacturers, retailers, and suppliers at risk. This excerpt from Chapter 5 of The Power of Resilience: How the Best Companies Manage the Unexpected explores the supply chain strategies that helped some companies successfully manage through the crisis and the subsequent economic recovery.
Companies work hard to reduce inventory and increase order-fill rates, yet many continue to experience erratic, stagnant, or declining inventory performance. The comprehensive approach outlined here can help them achieve the improvements they seek.
Companies that fail to take a holistic view of infrastructure—the physical and informational assets required to run a supply chain—sometimes make capital-investment decisions that are detrimental in the long run.
Most companies calculate total delivered cost (TDC) based on inaccurate and outdated assumptions. Using optimization technology to more accurately forecast TDC by product and customer will help them to improve both their supply chain planning decisions and their costs.
Offering bundled packages of products and services—a strategy known as "servitization"—provides greater value to the customer and can lead to more profitable relationships between manufacturer and customer. Here's how to develop a "servitized" supply chain that supports customer-segmented service.
Too many companies buy warehouse equipment and technology based on a "best case" scenario. Using an "engineered" approach to evaluating the return on investment will provide a more accurate picture of cost and productivity benefits.