The modern supply chain must resolve the
tension between the competing priorities of
efficiency and adaptability. Clearly, faster,
leaner, and more productive supply chain management
lends tremendous leverage. SAP customers are
seeing inventory-days-of-supply drop by nearly
40%, cash-to-cash cycle times drop by nearly
50%, and order fulfillment lead time drop by
more than 45%.
But these efficiencies — the result of good planning and execution
— can take you only so far. Every business inevitably must contend
with the unpredictable, and this requires adaptability. Shipments get
delayed, customers change orders, quality problems arise, and countless
other problems can crop up. Moreover, supply-driven networks are giving
way to more competitive demand-driven networks. So if the business networks
you have forged with partners and suppliers are not adaptive, you leave
yourself exposed to risk.