Poor quality data has been found to be the root cause of some of the most common problems experienced by those in supply chain jobs.
A new white paper, titled 23 Common (and Critical) DRP & MRP Mistakes and How to Avoid Them, and published by e2b technologies revealed that often something as simple as a poor grip on inventory can cause planning problems later down the line.
Without a clear picture of inventory, businesses can end up with either too much stock, costing them over the odds in storage and potentially wastage, or too little, in which case they are losing money by failing to meet demand. However, the collection and analysis of accurate inventory data could prevent these issues, and more, by helping firms to better forecast their needs.
"Distributors and manufacturers have a very hard job balancing supply and demand. There are so many inputs into the logic that companies frequently make mistakes when determining what they need to buy (or make), when, and how much," said James Mallory, author of the supply chain management software firm's white paper.
“Some mistakes can’t be avoided but some can be; this white paper was written to help supply chain management professionals make the best decisions to minimise costs while meeting or exceeding customer expectations.”
The 23 mistakes cover problems from supply mistakes, to errors with dates and forecasting. It also outlines common challenges encountered in identifying necessary quantities and resources. It explained that many of the issues are caused by poor quality data, or inappropriate analysis of the data that has been collected. Most of these issues are down to human error, so opting for a more integrated, streamlined approach can help firms overcome many supply chain problems.
By using modern technology, businesses are avoiding depending on people to interpret data, but also take the pressure off a person to consider all eventualities when making future plans. Preventing mistakes from occurring is all down to flexibility and visibility.
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