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Gartner® research: Severe supply shortages illustrate the need to rethink constraint-based S&OP balancing

March 1

Severe Supply Shortages Illustrate the Need to Rethink Constraint-Based S&OP Balancing

"Constraint-based planning is nothing new in supply chains. But recent events have made it clear that constraints other than production assets must be embedded within supply network planning and S&OP balancing. With ocean freight and land transportation constraints driving the need for more robust distribution planning over the last decade, recent raw material, labor, and energy shortages are bringing additional complexity and occasional chaos to product supply planning."

Assumptions of limitless resources were never sustainable. Market growth, supply base consolidations, resource depletions and rising performance expectations have made this even more apparent.

The ability to identify these potential network constraints must be included at the supply review stage of future S&OP and integrated business planning (IBP) processes. But where there is a severe shortage of any critical resource, a more proactive approach to product supply planning is essential.

Want to find out how to navigate severe supply shortages and translate resource constraints into feasible scenarios? Read the Gartner® report for practical insights into rethinking your S&OP balancing process.

Read the report

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