Given the break-neck pace at which the markets function, supply chain executives must think on their feet to stay ahead of the competition. Each day brings possibilities and factors, turning the decision-making job into an unenviable task. Making the correct decision requires an eclectic mix of experience and knowledge, the foundation of sound judgment. Errors in judgment come with both far-reaching and immediate consequences. That's why relying on gut instinct or experience alone or reviewing very few KPIs can sometimes spell severe impact. Now, consider technology helping you simulate the market by creating a digital twin using different distribution models. You can use this simulation to compare production to inventory statistics and make educated trade-off decisions. Supply chain optimization is a must to meet the new needs and supply chain issues. Supply chain managers must stay ahead of the curve to anticipate developments. Supply chain optimization aims to ensure that a production and distribution supply chain runs as efficiently as possible. This comprises effective inventory placement all along the supply chain and decreases operating costs, such as production, transportation, and administrative expenses. Supply Chain optimization frequently involves using mathematical modeling approaches in conjunction with computer software.
The COVID-19 pandemic has been a massive disruptor of supply chain operations worldwide. Every aspect of supply chain planning (SCP), such as demand planning, supply planning, inventory planning and strategy, strategic network design, or sales and operations planning (S&OP), has had its fair share of risks and uncertainties. Companies suffered from sudden surges in raw material prices, delivery delays, and production costs. An EY survey reports that only 2% of the companies were prepared for the disruptions, while 72% faced adverse effects. The pandemic changing the dynamics of supply chain management for the foreseeable future has bought the spotlight on the relevance of proactive supply chain planning and forecasting.