To be able to sense and respond faster and more intelligently to demand and supply dynamics, companies must transition traditional supply chains into open, configurable and responsive supply networks. Responsiveness is required at strategic, tactical and execution levels. Strategically, to maximize profit, companies need to match long-term demand and supply with available capacities. Tactically, they must synchronize supply to demand across the internal and external network to drive efficiency. And ultimately, at the execution level, they must sense and respond to demand changes instantly to drive revenue and market share.
About the Author: Richard Howells is senior director for supply chain management at SAP. He can be contacted at email@example.com.