Companies that don’t do a detailed forecast are greatly limiting their ability to marshal their resources to meet customer demand effectively. They will likely be caught with too little or too much inventory at some point, the need for expediting or overtime, and some disappointed customers and lost sales.
We all know what ERP is … the major information management system for manufacturers (and others) that integrates all of the major functions of the business. There is still some confusion, however, about just how some of the other approaches – Lean Manufacturing, Theory of Constraints, DDMRP, etc. – fit in and whether they replace ERP or are complementary.
As supply chain and operations management professionals, our focus always must be on the customer. Our job is to deliver what customers want and do it better than the competition. In the APICS Certified in Production and Inventory Management (CPIM) and Certified Supply Chain Professional (CSCP) programs, it is emphasized that operations strategy must be aimed at delivering value. Lean manufacturing and improvement methodologies emphasize the removal of waste or anything that adds no value to the product. And because this value is determined by the customer, it’s necessary to really understand what is desired.
Advice and Assistance for Manufacturers.
For a subject as vital as Supply Chain Management, it is not enough to tell people what needs to be done. They must experience it. The Fresh Connection is a different way of learning that puts participants at the heart of a lifelike simulation so they can experience the impact of every decision they make. Having just completed certification as a facilitator for The Fresh Connection supply chain simulation “game” Dave and his team solved challenges facing a fictional but realistic company.