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2 distinct improvement paths in Supply Chain
Supply Chain improvements follow two distinct paths.
The first one is quite common, when the team carries out continuous improvement on certain pre-defined business metrics. These could be OTIF, freshness, inventory, obsolescence, time to serve. These are typically local improvements which may or may not improve overall business results.
The other path looks at the overall system constraint, which is always a major leverage point. The team looks at the current way of managing the constraint, challenges the underlying assumptions, and makes fundamental improvements. Business results show a substantial jump in a short time, which is sustained. This is the TOC way.
Which improvement path are you currently on?