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Are we playing too safe in running our supply chains?
I have seen several supply chain leaders talk about maintaining consistently high levels of customer service. It is indeed a credible effort.
What worried me was that many of them complained about losing their competitive advantage. When I went deeper, they were quoting much higher supply lead times compared to their competitors. They were also inflexible in accommodating customer requests of faster delivery or higher quantities.
This raises an important question… are we being too safe in running our supply chains? Is higher service level coming at the cost of competitive advantage? Are we being penny wise and pound foolish?
It’s important to maintain and improve our competitive position. No compromises there. Look for ways to improve customer service levels by working on the fundamental supply chain capabilities of demand sensing, flexibility and responsiveness. Not by extending promised lead time!