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How soon do you see the impact of your Supply Chain improvement initiatives?
Supply chain teams have several ongoing improvement projects at any point in time. Some of these are expected to yield huge benefits. How soon do we start seeing a significant movement on the key performance parameters? Does the top management notice it on its own or do they need to be told about it?
What the top management notices is the improvement of the entire system, not the benefits derived for a sub-system. If the initiative tackles a local symptom, it’s unlikely to have a significant impact on the overall company performance.
However, if we focus on the leverage points, which eliminate the root cause of symptoms, the impact gets magnified and the whole company notices the performance improvement.
It is, therefore, imperative that we focus our entire efforts on improving the few leverage points in supply chain. TOC has an excellent framework to identify and improve these leverage points.