Structural Changes

Changing locations and processes can only get you so far.  Sometimes real structural changes are necessary to create an optimal supply chain:

  • Move toward a high velocity supply chain. Can we make inventory “whistle right through” our operations? Is Produce-to-Demand workable? Can we eliminate a layer of distribution network inventory?   Produce-to-Demand
  • Partner better with supplier(s). Are we asking our suppliers to do all that they should, e.g. with production flexibility, inventory support, or delivery responsiveness? Are we good at helping them to help us?
  • Delay product differentiation/postponement. Can we revamp our product design and manufacturing to avoid differentiating SKUs until late in the manufacturing or distribution process, potentially reducing inventory (and space) for materials, WIP, and finished goods?