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Supply chain Exceptions

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Mismatch of supply and demand is the major challenge facing supply chain managers. Perturbances to the supply chain range from economic conditions to imperfect market prediction. Despite best efforts to control processes and flow within an organization, dependence on external partners trigger exceptions to your supply chain.

Common causes of exceptions is the lack of supply chain visibility within the Supply chain, delay in communication and information transfer, allocation of products that are facing high demand and product obsolescence.

Improving intelligence on supply resolves the exceptions triggered by suppliers, because it allows companies to plan thoughtfully about material changes rather than react in crisis. Timely notification is the key. Critical information triggers procurement and engineering activities, and often affects the product flow from suppliers. However, receiving relevant information in a timely fashion is difficult. Information flow problems are exacerbated by complexities in the supply chain like the transportation and manufacturing lead times, demand variability, and challenges inherent in communicating within a large, geographically disbursed company.