Lisa Anderson’s press release about the reshaping of supply chains was picked up by CSCMP. Rightsizing and balancing inventories is becoming essential to success especially with increasing interest rates.
“As supply chains grapple with demand fluctuation, supplier challenges, stagflation, and volatility in the economy, Lisa Anderson—manufacturing and supply chain expert—sees inventory tightening.
Also the president of LMA Consulting Group, Anderson says, ‘The supply chain has been front and center since the beginning of the pandemic, when toilet paper highlighted the importance of a reliable supply chain. Volatility in supply chains has caused chaos in every industry.
‘Now, the emphasis is on inventory. Building inventory was important when supply chains were trying to regain a semblance of order. Yet, in haste to build inventory, sometimes the wrong inventory was increased, the right inventory was in the wrong place, profitability was sacrificed, or all of the above. Whatever the situation, inventory is now a key focus.’
Organizations are taking a hard look at existing inventory, customer demand, and profitability to remedy and balance inventory.
‘Companies need to reshape their operations and supply chains by right-sizing inventory levels,’ Anderson says. ‘The trick is to cut inventory without impacting customer service or cutting performance or profitability. Volatility in the economy will be the reality for the foreseeable future. Those who have processes in place to evaluate customer demand, create accurate forecasts, position capacity, and plan production to capitalize on opportunities that exist will have a huge advantage’.”