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Low competitiveness and poor ability to respond to demand: Production processes are not flexible enough to accommodate quickly changing customer needs

In the conference room are meeting: Christian (CFO), Peter (Production Manager), Simon (Sales Manager), Irene (IT Manager), and Paul (Purchasing Manager).

The Agenda title:

Low competitiveness and poor ability to respond to demand

Although it varies from company to company, you might want to examine the following:

  • How often do the product needs of your most important customers change? How do you typically hear of these changed needs? How much time is there between the communication and the company having to deliver products?
  • How do you avoid shortages? Can you substitute items and materials if need be? How do you makesure that items are where you need them to be, in a timely manner?
  • How effectively can your purchasing management accommodate changes to product design? How about changes to customer requirements after production has begun?
  • Can you revert to previous versions of products without disrupting manufacturing and supply chain operations?
  • How effectively can you predict delivery or availability dates? How often do orders ship late? How does that affect customers and sales? Do you need to accommodate any seasonal demand for products? How do you bring these shifts about? Have you been successful in delivering those products on time, and in the quantities customers needed?

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About the Author: AJ Amjad Khanmohamed

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