Part 6/8:
Industry leaders like Mr. Ung from Jabil emphasize that holding excess inventory, especially for many components, is inefficient and ties up working capital. Instead, he advocates for maintaining safety stock mainly for unique or critical parts that are difficult to source quickly or where supply chain variability is high.
This strategy encourages designing flexible and diversified supply chains that can operate smoothly with minimal inventory buffer, reserving stockpiling for critical items only. The challenge remains to develop a resilient supply chain that can adapt swiftly to disruptions without excessive costs.