Customer demand volatility has negative effects on the bottom line of manufacturers’. When demand doesn’t match supply significant profits can be lost. Abnormally low or high demand requires supply chain planning and inventory management. With an increasingly global supply base – and a lack of emerging markets suppliers, manufacturers’ visibility and control becomes very difficult. The key to balancing capacity, inventory levels and managing customer demand throughout the business cycle is an agile supply base. A manufacturer’s value stream provides significant opportunities for larger profits through reduced costs and greater revenue
Operation Consulting Group’s capacity management starts with a thorough evaluation then continues to solid plans and improvement efforts to impact the OEM’s bottom-line, top-line and key performance metrics.
Sustainable Capacity Improvement
The key outcome of OCG’s capacity transformation is sustainability and flexibility to meet consumer demand. Organizations often over-invest in the capacity of their suppliers when and are left with over extended facilities. OCG enables suppliers to become more efficient, effective and flexible, resulting in bottom line improvements.
Capacity Management is an important aspect of proper supply chain management. Its primary goal is to ensure that capacity meets current and future business requirements in a cost-effective manner. With correct planning and implementation, variations in demand will be accounted for and optimal service levels can be achieved. Comprehensive Capacity management solutions help you mitigate risks and improve business agility.