Our company is FMCG and we have often face turbulence in demand. No one in our company is trying to suppress turbulence. Instead, management encourages high turbulence in demand. How to cope up with demand variations that tend to have a negative impact on supply chain performance and operations in terms of planning failure and difficulties in obtaining raw materials?
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The manufacturing process cannot be planned in detail for any bullish demand. After turbulence often there is a low demand phase occurred. Management should understand these unplanned demand peaks erode the efficiency and induced complexity in supply chain. The principle mechanism to judge the performance should be based on flow and demand spikes/events/decline should not be considered as normal.
Your organization should acquire agile supply chain capability to avoid stock-outs on the one hand and reduced the impact of turbulence on the other hand. Aligning organization with Agile capabilities is meaningless until all potential stakeholder and suppliers work collaboratively.