DecisionMaps™ Reveal Your Best Options.
In the Chinese language a crisis is a dangerous opportunity. Executives with a good strategic management process already in place are in an excellent position to turn a crisis into an opportunity. Executives and other key decision-makers use DecisionMaps™ to reveal the best alternative before a problem becomes a crisis.
What problems are you wrestling with that could be solved with a new perspective before they become crises? How much more value could be realized if you used a DecisionMap™ to help you solve the problem now -- instead of later?
The following case example is highly summarized.
Case 167: Crisis Management/Product supply shortage
Problem: Forecasts predicted a product shortage at a critical moment for customers. Worst case scenario: profits could be reduced for several years if competitors were able to supply customers during the predicted outage. How could customer dissatisfaction be minimized during a supply disruption without incurring excessive expenses redistributing product.
Situation: A product was in such short supply that supplies would be exhausted before all the customers could be satisfied. Further, the product is so important to customers that failure to deliver will seriously weaken the relationship.
DecisionMap™: Inventory by supply point and expected demand by retail location were symbolically represented on a map.
Revealed: It was possible to ensure all supply points ran out on virtually the same day by temporarily reassigning some retail locations to different, but nearly equidistant, supply points.
Result: Supply point delivery territories were temporarily reassigned. Total system runout did occur. No product was redistributed to balance supply points. All supply points ran out within 48 hours of each other. Fortunately, new supplies came on line within a few days. The time customers went without important product was minimized without increasing company distribution expenses.
Application: Balancing inventories with projected demand -- by supply point -- is an on-going problem. The problem is compounded when the product is in short supply -- especially when the product is critically important to your customers. Most companies are willing to pay to redistribute product under those circumstances to protect customer relations.
Does your company ever redistribute product to get it from where it isn't needed to where it is short? Do you ever have to redistribute it a second time a few days later? Would an appropriate DecisionMap™ enable your inventory allocation decision-makers to reduce costs and improve customer service? To get help now email the best time and way to contact you.
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DecisionMaps and DecisionMap are service marks of GAPuzey Consultants.
