What could Lucent do to mitigate exposure to material shortages without increasing inventory?

The strategy to mitigate exposure to material shortages without increasing inventories needs to start with their customers and their forecasts of demand for this complex, highly customized SE55 Switches. The need for creating a more accurate collaborative planning and forecasting system is critical in this regard. By having a very accurate forecast, Lucent will be able to source only the specific components required and use inventory minimization techniques including Just in Time (JIT) and Vendor Managed Inventory (VMI) techniques to minimize inventory risk while having a more accurate forecast from customers.

Was today's leading edge procurement effective for future environments?

Simply put, no, it is not. There is much room for improvement in this regard, specifically using the SRM strategies mentioned earlier in this paper, the need for creating a strategic sourcing initiative in Lucent, organized in...
[ View Full Essay]