Stockpiling only worsens the supply chain, experts say

Whether it's "end-of-the-year chaos" with manufacturers halting production for a few weeks or geopolitical concerns, supply chain disruptions are bound to happen — but that doesn't mean hoarding is the solution, Harvard Business Review reported Oct. 27.

Inflating orders is an "understandable" response when anticipating a crisis or disruption, supply chain experts wrote, but it corrodes trust and triggers more issues. 

The article's authors have four tips:

1. Manufacturers won't always alter priorities based on the size of an order. 

2. When sharing supply and demand data, don't skimp on qualifying information. Providing numbers without context can obscure the whole picture. 

3. To lessen supply chain friction, form an intermediary team to handle the differences between suppliers and manufacturers. 

4. Investing in eye-tracking platforms can catch inconsistencies or commonly overlooked information.

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars