“Are you a good witch or a bad witch?” Glynda asks Dorothy in the classic movie, The Wizard of Oz. For manufacturers seeking to efficiently manage their inventories, the same question lingers over the issue of customer concentration: is customer concentration — serving a small group of major customers rather than a large number of […]
Read More… from Serving a Few Major Customers Vs Many Diverse Customers
In 1997, a fire at the only Toyota supplier providing the carmaker with P-valves inspired a change of policy: from then on Toyota would dual-source every part. By 2000, however, Toyota, citing the economies of scale possible through single sourcing, once again consolidated its supply chain. Companies that experience a significant disruption in their supply […]
Read More… from Supply Chain Risk: Diversification Vs Under-diversification
