Are your suppliers really integrated into your organization?
Do they have the capability, capacity and ability to flex demand as your customer needs change?
Do your suppliers quote long lead times for supply of your raw materials which are sometimes extenuated by the fact they hold no raw materials due to lack of demand visibility?
With low Inventory Turns, are you under pressure to free up working capital and to improve Customer Service Levels at the same time?
Traditional supplier and inventory management techniques lead to organizations holding excessive levels of raw material inventories while amplifying demand volatility throughout the supply chain. Increased Off Balance Sheet Liabilities increase as organizations drive their suppliers to hold significant levels of inventories to enable them to maintain service level requirements and overcome volatility in demand. This leads to further supply chain distortions and demand volatility magnification the deeper you go into your supply chain.