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Essay / Blue Sky Forecast - 771
Blue Sky ForecastOverviewEconomies of scale are the proven methods for creating discounts. But in an industry where personalization, competition, changing tastes and the search for new and interesting products are essential, carrying large inventories can be cumbersome and forecasting impossible. Fortunately, there is a company that meets all of these needs while reinventing logistics relationships. This company is PCH. PCH is an organization that helps businesses manage their supply chain. They do this by increasing information transparency throughout the supply chain through their many services. Between a rock and a hard place For many years, companies were vertically integrated; they owned their entire supply chain. Necessary in industries heavily loaded with proprietary information, this management method was wrongly applied to industries which only had a limited number of proprietary parts and shared the rest with other products. As companies learned their products and their competitors' products shared a significant number of parts, a new wave of manufacturing methods was developed. Electronic manufacturing services (EMS) were developed as a method of creating asset-light businesses. Necessary when changing tastes meant that large stocks would become expensive paperweights in a short time, this method created many unforeseen problems. The economies of scale needed to ensure low prices were eliminated as companies ordered fewer products more frequently. Additionally, as companies lost control of their entire supply chain, logistics, manufacturing, and sourcing issues proved problematic. A multi-step solution The companies found themselves in a dilemma. Manufacturers always produced the same number of...... middle of paper ... awards. In addition to manufacturing, reporting and fulfillment services, PCH also offers creative, engineering, logistics and compliance management services. With all these services, PCH has assumed a significant part of the responsibility. If something fails along the supply chain, it is PCH's responsibility to fix it. Knowledge is at the forefront of PCH’s risk management strategy. Additionally, PCH has implemented an aggressive environmental policy and supply chain security policy and requires all of its suppliers to be ISO certified. With these requirements of working with PCH as well as their relentless efforts to gain knowledge from their suppliers and customers, PCH has been able to manage their risks and minimize them. Although it is difficult to make forecasts in such a volatile industry, with good supply chain management, PCH has avoided finding itself in dire straits..