The years from 2007 through 2009 were notable for their economic volatility, reflected not only in the global economic recession but also the instability of customer demand and rapid movement in raw material, fuel, and commodity prices.
Supply chain executives were under pressure to develop more efficient, customer-centric supply chains while finding innovative ways to reduce costs and enable growth.
Companies then can adjust pricing and promotions strategies to shape demand, move additional product quickly, drive revenue growth, or further expand margins for a high-demand product with limited market supply.
The key is to have the foresight to leverage opportunities and mitigate challenging events so that your business not only survives but succeeds.
One way to bridge these gaps is with integrated business planning that involves people, process, and technology elements of the business.
This process integrates financial strategic budgeting and forecasting systems with operations planning and allows smart trade-off decisions to be made for the business.Meanwhile, they were also being asked to take advantage of business opportunities that arose from their economic conditions.As if the largest economic crisis since the Great Depression wasn’t enough of a challenge to the supply chain industry, the introduction of the smartphone and advanced analytics into the marketplace disrupted the industry further by providing an exponentially growing consumer base and easy access to goods and information.The old model was to wait until the end of the month or quarter to shift production and supply based on shipments and sales.The new model calls for more continuous, dynamic supply chain adjustments to rapidly respond to market changes.Strategy 3: Optimize product designs and product management for supply, manufacturing, and sustainability to accelerate profitable innovation.Innovation is crucial for being one step ahead of the competition. To be successful, products must be manufactured at the right cost, place, and time.Strategy 4: Align your supply chain with business goals by integrating sales and operations planning with corporate business planning.Although sales and operations planning processes provide coordination among sales, manufacturing, and distribution, there still are disconnects and gaps among finance, strategy, and operations in many companies.Effective strategies coupled with a well-defined plan and the right tools helped supply chain professionals alleviate fulfillment pressures and readied managers for market changes in the future.What are the strategies that helped the best survive?