Supply chain management in the material science and electronics industry

Responding to the needs of a diversified customer base across a broad geographic spread requires new approaches to supply chain management. Customers are increasingly demanding a routinely high level of delivery performance, combined with short lead-times and a flexible response to changes in order quantities and delivery dates, all underpinned by relentless mandates of continuous improvement. A conventional made-to-order approach is not sufficient to meet the diverse needs of the market place: new ways of working which focus on the customers' underlying demand pattern, integrating this demand all the way through the supply chain to raw material suppliers, are required. Techniques which can be used to maximise the ability of the supply chain to respond to the needs of customers include postponement strategies, the judicious use of inventory holdings, vendor managed inventory, forecasting and demand planning. The following explanations and ideas show how these techniques can be applied to improve customer service.