“ALLOCATION BY DECIBEL” is a chaotic way of reacting to sudden product shortage. “ALLOCATION BY DECIBEL” may damage relationships and overall business results.
Without robust processes, that’s a natural way of behaving. Commercial teams are doing everything possible to protect supply for key customers, and supply chain professionals want the same and feel overwhelmed by the non-feasibility of all the requests.
If “ALLOCATION BY DECIBEL” is familiar to you, you may consider investments into the following processes:
– ESCALATION process – understand the problem and involve quickly the right decisionmakers
– Weekly S&OE – keep an overview on the top issues and prioritize according to customer and business needs
– Global ALLOCATION Process – mitigate and minimize customer and business impact in a transparent way
– Monthly S&OP – plan proactively to avoid customer and business impact in the future
Please contact me if you would like to review and improve your processes
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