If the COVID-19 crisis has shown manufacturing anything, it’s that supply chains are ill-prepared to weather systemic shocks. In response, recent LNS Research survey data shows that manufacturers are taking a relatively reactionary approach to sustaining operations while simultaneously trying to reimagine what a resilient supply chain looks like.
Avoid Sub-optimized Silos
Supply chain optimization theory identifies three, and only three, buffers that can be flexed to optimize a supply chain’s ability to deliver in the face of variability. They are:
- Lead time
Supply chain planners usually operate in the realm of setting safety stock inventory levels, locating distribution centers and logistic networks to ensure a competitive lead time, and building or contracting for sufficient manufacturing capacity. The companies that best build and optimize these buffers deliver a significant competitive advantage. In the face of normal or new normals, we can be much better prepared.
Fragile to Agile
In this Spotlight, LNS Research examines:
- How manufacturing leaders’ performance impacts the broader performance of the supply chain
- What Supply Chain planners are missing that affects lead time and capacity
- How to utilize Industrial Transformation (IX) investments and maturity to improve alignment and collaboration between manufacturing and supply chain functions
- What it takes to create more manufacturing agility, whether times of crisis or calm
- How to create a cohesive strategy that effectively leverages reductions in inventory and lead time while increasing capacity
To learn more, download the full research report today.