Supply Chain Threats to Consumer Durable Goods Companies
How to Use Supply Chain Management Software to Overcome Them
The consumer durables industry is experiencing significant supply chain threats, from product proliferation, demand volatility, intense global competition, evolving regulations and constrained supply brought on by a long period of sustained growth. By using supply chain management software to stay extremely efficient and resilient, companies can deliver the high-quality, differentiated products at the cost and service levels consumers expect.
For example, one threat is the demand for consumer durable goods is highly correlated to economic strength, making the industry largely dependent on disposable income. The global market has witnessed a surge in demand as developing economies provide more disposable income to more potential buyers. Disposable income can ebb and flow abruptly due to natural and man-made disruptions, leaving durable goods manufacturers scrambling to deal with excess inventory. Many durable goods also have a limited shelf-life due to constant advances in technology and ever-changing customer tastes. There is an opportunity for companies to use supply chain management software and anticipate potential market changes across multiple time horizons in order to mitigate risks and embrace opportunities. Risks and opportunities must be evaluated from a volumetric standpoint, as well as from their financial impact on the business.
It is vital that durable goods companies use supply chain management software to make effective planning and optimization decisions in two key ways:
- Capturing, verifying and combining information to enable rich analysis, decision making and rapid response to planned and unplanned events
- Developing robust integrated business planning capabilities supported by a comprehensive supply chain planning and optimization platform to reduce cycle and response times, maximize resource utilization and improve the effectiveness of the extended organization.
In addition to the one above, this eBook explores four additional areas where the greatest threats occur and presents opportunities in each one to help consumer durable goods companies stay competitive.
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