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"Supply Chain Insights: The Hidden Culprit Behind Inefficiencies in Manufacturing Companies"





During my 30-year journey in supply chain management, I've observed a common misconception among manufacturing companies. Many believe that supply chain challenges stem primarily from underdeveloped suppliers or unrealistic customer demands. However, the truth lies closer to home.



The real bottleneck? An inefficient Order to Cash (O2C) process.



O2C encompasses everything from order acceptance to cash receipt, including crucial elements like Sales and Operations Planning (S&OP). When this internal process falters, it creates a domino effect:



- Increased pressure on suppliers


- Reduced flexibility for customers


- Misguided focus on achieving >95% internal metrics



The result? We often unfairly blame suppliers or label customer demands as unrealistic, when the root cause is within our control.



Before pointing fingers, we should take a hard look at your O2C process. It's entirely within your jurisdiction and optimizing it can yield significant improvements across your entire supply chain.



Let's shift our focus inward and unlock the true potential of our supply chains.




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