Blog
29 October 2020
production flexibility and low inventory stocks

Maximum production flexibility and low inventory stocks: mission impossible?

Operations is a highly strategic function for a company.
They have the task of ensuring the respect of time and quality in the process that leads to the final delivery of the product, so as to allow the achievement of the result in terms of sales turnover.

Those who work in Operations know how vital, but often complex, it is to cope with the variability of commercial forecasts, which is inevitably projected on the planning of internal tasks and on the requests made of suppliers.

What are the main procurement-related challenges that may arise for the Head of Operations, and how can they be tackled?

Management of forecast variability
Important to avoid a failure to achieve sales targets due to production problems.
Downtime caused by missing or flawed components can occur if suppliers fail to keep up with the variability of requests and end up delivering goods late.

Henche the importance of a tool that:

  • allows to have the supplier’s delivery dates and order confirmations
  • guarantee the reliability of delivery dates

Effective stock management
Nowadays, companies are being asked to be increasingly market-responsive, in order to maintain their competitiveness in the current global context.
This is why sometimes in warehouse management the trend is to increase stock levels of components and semi-finished products.

This approach entails an increase in costs:

  • those related to the purchase of excess materials
  • those related to the warehouse

One cannot ignore a tool that makes it possible to measure the performance of suppliers accurately and promptly, and to have guarantees about the accuracy of delivery dates. This leads to lower inventory stocks.

Download the document to learn more.