Improving Inventory Availability in a Volatile Supply Chain.

Great discussion on improving inventory availability in a volatile supply chain. This live event was done through the MIT Center for Transportation & Logistics.

In a volatile supply chain, it can be challenging to maintain adequate inventory levels to meet customer demand. To improve inventory availability in this environment, there are several strategies that companies can consider:

Improve forecasting accuracy: Accurate forecasting of demand can help companies to better plan and manage their inventory levels, reducing the risk of shortages or excesses.
Implement an agile supply chain: An agile supply chain is one that is able to quickly respond to changes in demand or supply, allowing companies to better adapt to volatility.
Use a just-in-time (JIT) inventory management system: A JIT system involves keeping minimal inventory on hand and using a pull-based system to replenish inventory as needed. This can help to minimize costs associated with excess or obsolete inventory and improve inventory availability.
Utilize advanced technologies: Technologies such as artificial intelligence (AI), machine learning, and the internet of things (IoT) can help to improve forecasting accuracy, optimize inventory levels, and increase efficiency across the supply chain.
Develop relationships with multiple suppliers: Having a diverse supplier base can help to reduce the risk of supply chain disruptions, as companies can source materials from multiple suppliers if needed.

Overall, improving inventory availability in a volatile supply chain requires careful planning, effective forecasting, and the use of advanced technologies and agile supply chain practices.

Supply Chain and Inventory Quotes

“The goal is not to improve one measurement in isolation. The goal is to reduce operational expenses AND reduce inventories and increase throughput simultaneously.” ~Eliyahu M. Goldratt
“Make inventory a common enemy for your company.” ~Dave Waters
“Quality is free. It’s not a gift, but it’s free. The ‘unquality’ things are what cost money.” ~Phil Crosby
“The more inventory a company has, the less likely they will have what they need.” ~Taiichi Ohno
“There are two ways to extend a business. Take inventory of what you’re good at and extend out from your skills. Or determine what your customers need and work backward, even if it requires learning new skills. Kindle is an example of working backward.” ~Jeff Bezos
“Good is the enemy of great. That’s why so few things become great.” ~James C. Collins
“I say an hour lost at a bottleneck is an hour out of the entire system. I say an hour saved at a non-bottleneck is worthless. Bottlenecks govern both throughput and inventory.” ~Eliyahu M. Goldratt
“Tim Cook was brought in to reduce inventory and make Apple’s supply chain much more agile as well as leaner. Tim Cook went from Apple’s Chief Procurement Officer and took Steve Jobs place as Apple’s CEO.” ~EverythingSupplyChain.com
“When you are out observing on the gemba, do something to help them. If you do, people will come to expect that you can help them and will look forward to seeing you again on the gemba.” ~Taiichi Ohno