Read this blog to learn why Supply Chain uncertainty is a fundamental challenge for supply chain planners
In supply chain planning, uncertainty causes dynamic tension: do all the right things to improve the forecast, and hit a ceiling on the way to accuracy.
The fact is, inherent in supply chain planning are volatility and randomness of thousands, if not millions, of individual buying decisions and supplier activities. This lumpy demand is exacerbated by rapidly changing consumer tastes and demand shaping through your own and your competitors’ promotional activities. On top of that, COVID-19 impacts continue to drive additional fickleness in demand. That volatility will increase and transform as government mandates and consumer buying habits shift.
At this critical point, understanding uncertainty – and planning with it in mind - becomes paramount for increasing forecast precision. That’s when supply chain planners should stop avoiding uncertainty and start embracing it … but not surrender to it.
Now you can understand where uncertainty hides within your supply chain for more accurate forecasts and a better understanding of how to get ahead of volatility. Take a look at our quick reference guide, No more hide-&-seek for Supply Chain uncertainty.