--- title: Supplier Capacity Management description: Supplier Capacity Management --- - CGN India - Winning Moments - Blue Angels - ![](https://www.cgnglobal.com/hubfs/CGN%20New%202018/tadaSmall.png) - ![](https://www.cgnglobal.com/hubfs/CGN%20New%202018/owlSmall.png) [![](https://www.cgnglobal.com/hs-fs/hubfs/CGN-ForbesWebsite19.png?width=220&height=74&name=CGN-ForbesWebsite19.png)](https://www.cgnglobal.com/india/) - Your Challenge - Markets & Strategy - [Project Management Office](https://www.cgnglobal.com/india/project-management-office) - [Change Management](https://www.cgnglobal.com/india/change-management) - [Business Process Improvement](https://www.cgnglobal.com/india/business-process-improvement) - [Product Development](https://www.cgnglobal.com/india/product-development) - Supply Chain & Operations - [Supplier Collaboration](https://www.cgnglobal.com/india/supplier-collaboration-management) - [Supplier Performance Improvement](https://www.cgnglobal.com/india/supplier-performance-improvement-practice) - 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When demand is low, suppliers are able to make sufficient quantities that meet these demands. When demand suddenly spikes, suppliers are struggling to produce adequate amounts – hurting sales and leaving customers unhappy. Couple this ailment with an increasingly global supply base – often resulting in lack of emerging markets supplier maturity (capacity/capability) – makes manufacturers’ visibility and control of meeting customer demands very difficult. The key to balancing capacity in an upturn, [inventory levels](https://www.cgnglobal.com/india/inventory-management) during downturns and [managing customer demand](https://www.cgnglobal.com/india/demand-management) throughout the business cycle is **an agile supply base**. By increasing a supplier’s possible capacity, a manufacturer’s entire value stream provides the framework for a truly agile enterprise. ### Related Challenges - [Supplier Collaboration](https://www.cgnglobal.com/india/supplier-collaboration-management) - [Supplier Performance Improvement](https://www.cgnglobal.com/india/supplier-performance-improvement-practice) - [Supplier Capacity Management](https://www.cgnglobal.com/india/supplier-capacity-management) - [Inventory Management](https://www.cgnglobal.com/india/inventory-management) - [Transportation Management](https://www.cgnglobal.com/india/transportation-management) - [Supply Chain Planning](https://www.cgnglobal.com/india/supply-chain-planning) - [Demand Management](https://www.cgnglobal.com/india/demand-management) - [Lean](https://www.cgnglobal.com/india/lean-practice) ## CGN Global’s Capacity management CGN Global’s Capacity management starts with a thorough evaluation to accurately gauge the current state then rapidly plans and implements capacity improvement efforts to impact the OEM’s bottom-line, top-line and key performance metrics. ### Evaluate - Supplier capacity - Supplier capability - OEM-Supplier relationship - OEM-Supplier communication ### Impact - Meet short, mid & long-term capacity goals - Plan and Implement supplier capacity improvement roadmap ### Typical OEM Benefits - Dramatic increase in supplier capacity - Increased ability to produce & ship on time - Achievement of OEM revenue & profitability targets - Improved response time & value chain reliability/flexibility - Decreased supply chain complexity - Enhanced supplier capability - Alignment of supplier to OEM strategic goals - Reduced inventory - Elimination of line-down issues - Clarity & visibility on risks with ![22](https://www.cgnglobal.com/hs-fs/hubfs/22.jpg?width=1745&name=22.jpg "22") ### How we do it. ### CGN Generally Takes A 6 Step Approach Towards Sustainable Capacity Management: The key outcome of CGN’s supplier capacity transformation is the achievable idea of sustainability. Customer demand will always be a rollercoaster with twists, turns and 50-foot drops. Organizations often invest millions of dollars throughout the year increasing the capacity of their suppliers when needed, and are left with excess when demand suddenly takes a dive. CGN uses a workshop based approach to enable suppliers to be more efficient and effective and able to ramp up/ramp down capacity with ease, resulting in huge benefits to all parties’ bottom lines and invaluable customer satisfaction. CGN Generally Takes A 6 Step Approach Towards Sustainable Capacity Management: - Supplier Identification and Engagement - a critical first step in developing a collaborative program that defines the relevant level of intervention with suppliers - Deep Dive Capacity Assessments - involve “doing the homework” prior to supplier visits as well as detailed on-site assessments for identifying all capacity challenges at a business level - Mitigation Planning - establishes commitment through clear understanding of roles & responsibilities, timeline and investment expectations from both sides - Enterprise Capacity Planning & Modeling - Tactical action plans are augmented with a strategic understanding of the mid-long term supply and demand gaps across the supply base to further refine the mitigation plans - Governance - collaboration, coordination and control are extremely important for providing continuous focus on the common goals of the program and ensuring success - Action Plan Management - ultimately, relentless execution by working the plan is the key to achieving success ### For more information on CGN's Supplier Capacity Management capabilities, please contact: Request Call Back X [![CGN_Tagline1 (1)](https://www.cgnglobal.com/hs-fs/hubfs/CGN%20New%202018/CGN_Tagline1%20(1).png?width=203&name=CGN_Tagline1%20(1).png "CGN_Tagline1 (1)")](https://www.cgnglobal.com/india) © 2026 CGN. 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