Allocation of Insufficient Supply

With labor, plastics, chips, cans and many other global shortages, demand is far greater than supply for many manufacturers. The question is: How best do we handle that?

Allocation is the term for allocating your limited supply. It should always start with a strategy — 100% to top customers, or split among markets or customers, or something else. Once the market-facing strategy is in place, execution must be flawless.

Truth and honesty are crucial, as your customers need that to plan their own business reactions. Constant communication of what and when that they can use is one side of the coin; constant commuication of honestly what they need and when, considering other shortages they are facing themselves, is the least they can do for you.

While working to resolve the shortages you face in a critical path mindset, serve your markets as best you can. These scenarios are horrible times to over promise.