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The lack of inventory visibility and clarity can cost your company significant revenue. With fluctuations in demand due to economic conditions and disruptions, companies have been flying blind the past few years in what areas to cut or increase productivity and it has a domino effect. In yesterday’s Wall Street Journal, a case study is presented of what happens when contract manufacturers and OEMs all react to a down economy and it the impact on those further down in the value chain such as retailers.

The reaction is to reduce costs, but the problem is where to cut and how much. In the WSJ article, companies cut far too deeply resulting in lost opportunities to actually sell more products and generate more revenue. At the heart of this problem…lack of collaboration and visibility. What happened to companies such as Zoran, TSMC and Applied Materials is they cut too much and the impact was felt all the way to retailers such as Best Buy.

The reality is this situation can easily be applied across any industry, segment, or category, and the scary thought is while companies are struggling to survive, they continue to leave money on the table.

Wall Street Journal
“Clarity Is Missing Link in Supply Chain”
By Phred Dvorak

Posted in Uncategorized
Views 1037 Comments 0 Email Blog Entry
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