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Company policies often pull down Supply Chain performance.
When we look at improving the performance of a company’s Supply Chain, an area often overlooked is the impact of various company policies. Many of these policies affect flexibility of the backend operations, either explicitly or implicitly. Some policies, aimed at providing stability of operations, end up delaying supply response to any demand shift.
We must take a hard look at these policies which are affecting either flexibility or responsiveness of supply chain and modify them.
Improvements get stunted unless policies are tweaked to support them.