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sinha.rk.dr@gmail.com
Major improvements in Supply Chain require challenging the current assumptions and practices.
Supply Chains for most companies operate on certain basic assumptions, which have hardened into current practices over time. If we want to make major improvements in supply chain performance, we must challenge these practices.
A few examples would possibly help.
‘Keep high inventory near the customer locations to cater to variations in demand…’
‘Reserve inventory for various channels to avoid any one channel over-consuming it…’
‘Minimize nodes in supply chain to minimize inventory…’
‘Avoid expediting deliveries, to control logistics cost…’
These assumptions and practices are pretty common in various companies. Unless we challenge them, performance would continue to stagnate at the current levels.