In difficult times, the first gut reaction of businesses is to drastically cut costs and inventories. Supply chain managers are charged with executing the cuts, and in getting totally consumed with this awesome responsibility they often lose sight of other goals. However, as an advocate of supply chain’s critical role in demand management—defined as the matching of supply and demand during planning as well as real-time execution—I believe managers can also help shape demand. In doing so, they can bolster profits and enhance top-line revenues by not overlooking opportunities when they arise.
I’ve seen various anecdotal situations that demonstrate how managers overlook revenue and profit-enhancing opportunities in their pursuit of goals focused primarily on cost and inventory reductions. I discuss three of these in this column.