The movement of information, products and materials is becoming more widely distributed and complex and this creates a big challenge for manufacturers. Adding to the difficulty are increased competitive pressures, reduced supply and demand predictability, and more widely dispersed assets. These challenges result in increased volatility and risk with decreased visibility and predictability.
The consequences of this reality are significant. Examples include losing sales to competitors because a manufacturer didn’t properly anticipate demand or paying extra inventory costs because too much material was purchased before a time of falling prices. These hurt your ability to price competitively in the market.