Complex as it is, supply chain management through reliable forecasting and demand planning plays a significant role in any industry. Managing the flow of activities through a series of processes enables the chain to function well, thus improving inventory visibility and inventory movement. This also encompasses planning and managing all activities involved in sourcing and procurement, conversion, and all logistics management activities.
Identifying areas of improvement in a supply chain and making efforts to tackle them is a continuous process. Our organization prioritizes the importance of classifying the items based on demand patterns. In this way, we improve the service to all healthcare providers in terms of material requirements.
One of the methods implemented was the classification of items by separating stock-able items from the non-stock-able items. Having this process put into practice identifies for you what particular buys from non-particular buys. This plan ensures that all procurement is done according to demand.
Understanding the process of operation will allow any organization to be competitive by having a well-managed and balanced process that focuses on the function of providing products as well as planning and controlling of all activities in general. All these factors contribute to a healthy supply chain that is substantially influenced by the importance of demand planning, classifying, and inventory positioning. When done right, this helps to avoid issues up and down the Supply Chain.
There are many types of approaches one can implement; however, accomplishing your objective with success and distinction will occur because of how you execute and align your process according to practice . It is a continuous learning process on knowing how to manage complexity without being complicated capturing significant benefits in reduction of efforts.
I will be discussing our journey at IBF’s Supply Chain Forecasting & Planning Conference in Dubai, 16-17 March 2015. I look forward to seeing you there.
“If you change your thinking, you can change your life”
Majed A. Al Osaimi, B.Sc., M.B.A
Director of Supply Chain
Royal Commission Health Services Program