Before MRP, the most popular approach to inventory management was Order Point, where each point is independent. Yet the more complex an operational environment becomes — thanks to a broader SKU list or changes to assortment and demand — the more likely you are to see bimodal inventory distribution, when too little of the right … Read more
The Origins of Order Point What was inventory management like before MRP? Before MRP was introduced, the most popular inventory management approach was called Order Point. The main limitations were within companies — that is, the market often wanted more than a company could build. Everything that was produced could and would be sold. Therefore, … Read more
There are a number of reasons executives give when they say they’re not ready to undertake a supply chain transformation. Before we consider implementing Demand Driven, we must: Clean up our ERP system Implement a new version of our ERP system Strengthen our supply chain management basics Implement or strengthen our S&OP / MPS Deploy … Read more
The role of the supply chain manager is by nature very transverse. It is to orchestrate the collaboration of disparate functions — sales, production, marketing, product development, and more — and deliver a flawless service to the company’s customers, while ensuring profitability. Supply chain leaders must therefore be able to speak multiple languages with their … Read more
