Description
Why might an organization stop using a supply chain monitoring metric?
Explanation & Answer
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1. When the organization as the producer and is dealing directly with the consumer. Using supply chain monitoring metrics would be null since there is no real chain involved.
2. When there is Surplus. When an organization acting as the producer has produced more than enough and distributed to the retailers then supply chain data analysis would be of minimal use.
3. When the manufacturer have already gathered adequate resources and pulled together all the factors of production, Supply chain monitoring metrics would not be of much value.
4. when a better method of monitoring the keeping the smooth flow of the supply chain is invented.
Note
Scarcity of resources, low warehouse inventories or market fluctuations –
there are many reasons for disruptions in the supply chain. And one
missed delivery can shut down critical manufacturing systems or even the
entire production. To detect supply risks at an early stage, you need a
central system that gives both you and your suppliers a common view of
the actual supply situation – especially with regard to
production-critical parts.
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