The U.S. economy is roaring back to life. Demand for many items is soaring. But many companies can’t catch up due to production bottlenecks, labor shortages, supply chain woes and other problems.
Restaurants lose sales because they can’t fully staff drive-throughs. Grocers face rising costs on items from produce to peanut butter as transportation, freight and labor costs increase. Apparel firms struggle with inventory issues due to factory shutdowns during COVID and clogged ports, also more e-commerce returns which rose 70% in 2020 v. 2019. The retail inventory-to-sales ratio dropped to 1.1 in March, the lowest level since tracking by the Federal Reserve began in 1994, highlighting the supply-demand imbalance.
When problems abound, it’s time to look for new ideas and new ways of doing things. MOSIMTEC simulation modeling can help. How can you improve your supply chain? How can you enhance production, sales and other processes? How can you navigate uncertainties in supply, demand, staffing and other inputs? How can you address rising costs? Explore multiple options virtually before implementing in real life. Evaluate impact on KPIs to see what works best and what doesn’t. Outdo competitors. Avoid missteps. MOSIMTEC is here to help.
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Related article available here: https://www.wsj.com/articles/u-s-businesses-are-playing-catch-up-as-the-economy-surges-11621000821