Supply chain executives worldwide face
an ongoing imperative to improve customer service levels. They also face an
ongoing risk: don’t create excess or obsolete inventory at the same time.
It’s a double-edged sword for supply
chain performance. Because of variability in demand and supply, increasing
customer service levels can lead to higher levels of safety stock. Improving
cash flow by indiscriminately reducing working capital Rands can result in
slashing the wrong inventory, resulting in lower customer service levels.