All futures are unpredictable, but some are more unpredictable than others

Seasonally dependent markets provide special challenges for supply chain professionals who work in certain segments of the chemical industry.  With the right combination of supply chain agility and planning techniques, even these markets can be efficiently served with minimal levels of inventory. 

Everybody knows that seasons are entirely predictable.  That is to say, we all know that spring is followed by summer, the autumn, then winter.  We are certain that even given the vagaries of climate change we will be wearing jumpers in the winter and tee-shirts in the summer.  Easy!

At the next level of detail, it becomes a little more difficult to predict.  Exactly how warm will the summer be; how humid?  When will the weather conditions become just right for aphids to breed and over what sort of area?  Where will specific crop diseases break out and how virulent will they be?  These may not all be questions that the average holidaymaker asks when planning a family vacation, but it certainly exercises the minds of those working in the agrochemical sector. 

For many companies in the chemical sector the predictability of the seasons is, in fact, very unpredictable.  This is hugely important, if they get their forecasts wrong they will miss out on massive sales volumes, or, just as bad, waste millions of dollars creating un-used inventory.

To read the article in full please click on the pdf link below:

Planning the Unplannable

For further information please contact Kate Adams at kate.adams@wcigroup.com