Supply Chain has to hypothesize in order to calculate means and organization in relation to customer-service targets. At a given level of service, this corresponds to the optimized organization of logically efficient resources (the best service at minimum cost).
However, the ambition of service expectation (or the very nature of service) varies for each product according to where it is in its life cycle:
- When launching a product, expected service is based on the responsiveness of the Supply Chain and its capacity to cover any acceleration in the market and/or ability to integrate a new reference system into management systems.
- In contrast, at the end of a product’s life, expectations focus more on the management of obsolete or dead stock as well as on number of returns.