Supplier Capacity Management Definition
Supplier capacity management is the process of assessing, monitoring and managing the ability of suppliers to meet the demands of their customers. It includes understanding the supplier‘s current and future production capabilities, as well as their financial health and stability.
This allows businesses to identify risks and opportunities associated with their supplier base, and put in place plans to mitigate any potential disruptions to supply. Capacity management also helps businesses negotiate better terms with suppliers, by having a clear understanding of the supplier’s true capabilities.
