Demand Amplification Amplification of demand through a supply chain exists when the orders placed on suppliers have a higher variability than for sales made to buyers. Although this has existed for a long time, it was formalised in the late 1950s by Jay Forrester, and later promoted as the ‘Bullwhip’ effect by Hau Lee in the 1990s. The main causes … Read More
Reduce waste for Sustainability through Supply Chains
Waste happens When waste is discussed, it typically refers to waste generated within a business. However, an increasing requirement for Sustainability of organisations means that the waste of time and materials must include that occurring throughout the supply chains. The extent of the challenge can be assumed to be large, but is dependent on the industry sector and the strategies … Read More
How to ‘understand’ suppliers through your supply chains
Understand suppliers Supply Chains cannot be managed. Instead, the role of supply chain professionals is to understand supply chains and the likely actions of suppliers and providers of supply chain services. But what does ‘understand’ mean? It relates to understanding the likely behaviour and response of businesses to unplanned occurrences in their supply chains. How much the responses are likely … Read More
Use Power between parties in Supply Chain negotiations
Using a wrong term Partnership is one of the most overused terms in business and particularly when discussing supply chains. The dictionary meaning of the word is a sharing of risk and reward. Do any of your organisation’s relationships with suppliers match the meaning? The more familiar approach for buyers is you take the risk and I take the reward. … Read More
Procurement Intelligence to build Supply Markets Plan
Know supply markets Surveys conducted since the COVID pandemic indicate that even well-resourced companies know the production location details of only about half of their Tier 1 suppliers, about 20 percent of Tier 2 suppliers and less than 5 percent of Tier 3 suppliers. Yet it is at these lower Tiers where the risks to supply are highest. The ‘need … Read More