Monday, 9 May 2011

Top 10 Nightmare in Supply Chain Management

I will ranked the nightmare of a procurement / purchasing / material planner as following:-

No 10 - Forecast by customer less then 10% accurate in term of order not coming in as plan

No 9 -   High stockpile with no order as plan which mean that high investment of stock with no short term    return of investment

No 8 -   Price increase which affect budget on material

No 7 -   Material pilferages in warehouse due to poor recording, this will create other worst nightmare to follow

No 6 -   Change of plan by manufacturing without sufficient notice which may create shortfall in supply on time to meet the demand

No 5 -   Suppliers not able to deliver on time

No 4 - Low yield by manufacturing compare to budget creating production shortfall and need to rearrange more material

No 3 - High customer orders compare to forecast which create material shortages and not able to meet requirement to supply on time

No 2 - Suppliers deliver substandard material which create cost to manufacturing and elsewhere

No 1 - No material to fulfil order causing late shipment

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