Parties and weddings have RSVPs. This is an acceptable mode as it helps the host to understand the number of guests he has to make arrangements for.
However, those are private occasions we are talking about. In the world of online shopping, there is no RSVP system. It is more of “everybody’s welcome”. In fact, the more the better. There are certain exceptions though.
Of late, we have seen mobile companies launching their flagship models under an ‘invite’ system. Or a ‘flash sale’. Besides the massive hype, there are two aspects to this. One, the retailer/brand has only a
limited number of pieces and intends on emptying the stock soon. The other is to make sure that they know how many people are looking forward to buying their ‘invite only’ product so that they can
manufacture or keep those many pieces ready for shipment.
A supply chain has to have that perfect balance. By balance, it must not have excess goods. At the same time, it cannot understock. The fate of a supply chain is shaped in how it tackles this very challenge
of inventory maintenance.
How does a supply chain make sure that it has the right amount of inventory?
Transparent contracts: Retailers and supply chain management facilities are now using risk-aware contracts. This highlights timelines and mentions upfront about the ownership denominations for long lead goods, including the conditions for aligning risk instances and penalties on cancellations.
Tight security: It is not just about the management and maintenance of inventory anymore. Since data is everything, supply chains are facing huge risks with cyberpirates who are looking to steal information from anybody and anything substantial. The famous Dyreza Trojan, a powerful malware, had in the past, stolen banking credentials and data of shoppers from online retailers. A latest news report mentioned them in an attack against IT supply chains as well.
Kevin Epstein, Vice President of Threat Operations for Proofpoint, says, “The disturbing aspect to this choice of targets is that it’s clearly a complete supply chain. If you look at the potential of this supply chain, it’s a powerful set of accounts to gain access to. With it, you can divert shipments of physical goods, issue full sets of payments and invoices to artificial companies, do large-scale gift-card issues. This is a significant issue, and while some may not think it’s as glamorous as direct access to a bank account, the risk here is huge. This is a core element of many companies.”
Backup: It is so essential to have a backup. If we are fired from our job, what next? Every important thing is to have a backup. A supply chain is no different. If a regular supplier has taken a hit somewhere, it doesn’t mean the supply chain can endorse that excuse. A supply chain is to have an alternate and ready back up when such situations arise.
One thing is certain. It is not a good thing for a supply chain to come short in its stock.
The supply chain, if required, has to change its protocols on a regular basis to ensure that it holds the right amount of stock.
