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Inherent Simplicity in Supply Chains is not simplification.
One of the key concepts in TOC is the Inherent Simplicity of complex adaptive systems like supply chains. I have seen many supply chain professionals confuse it with simplification of the supply chain. The two are completely different.
Simplification often means grouping various data points together and treating them in a similar manner. For example, ABC and XYZ classification of products, segmentation of customers based on their consumption and ordering patterns, delivery channels used for customer servicing. These are used to make 2x2 or 3x3 matrix, where each cell is treated differently in terms of target service levels, fulfilment processes, etc.
Such a classification across various dimensions doesn’t reveal the Inherent Simplicity. It just results in more convenient ways of working, often compromising on certain customer needs.
Inherent Simplicity, on the other hand, refers to analysing pain areas (Undesirable Effects) in the supply chain to get to their root cause. It often challenges our deeply held beliefs, assumptions, systems and processes.
Eliminating the root cause reveals that the entire supply chain system is inherently simple and can be improved by following a few fundamental principles and working on the leverage points.