Companies can operate so lean, a single disaster can disrupt the entire supply chain, causing downtime in manufacturing plants and lost profits. The past few years show the risk of depending too much on “just-in-time” supplies.
On the other hand, overstocking supplies and goods can also lead to problems. A recent Strategic Sourceror post outlines the potential risks of a maintaining supply chain surplus. The piece points out that overstocking materials or finished goods can create financial risky, particularly in situations where: