Dynamic Supply Chain Dynamic Demand Drives Dynamic Supply Chain Dynamic Demand Fluctuation makes the Supply Chain also Dynamic. Companies are pushing the inventory down the lane to suppliers and would like to delay their procurement as late as possible. Many of the large retailers like Amazon, Home Depot are insisting on very short delivery window of 3 days. They expect to procure and ship with in the same week. This is possible in case of retailers who buy finished goods and ship the same with out any added process on their side. But for Manufacturers, this will not be possible as they need to stock the raw material to absorb the long lead time and fluctuations in the demand.
Frequent Orders and Order Change Before Lean manufacturing and Lean procurement concepts became widely adopted, Manufacturing companies where forced to stock large inventory to avoid risks in lead time. With today’s dynamic market, it is not possible to have the luxury of 3 months of consumption in the warehouses. At the maximum it is only a week’s requirement is stocked.