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Optimisation efforts in supply chains are mostly sub-optimal.
Planners tend to compromise between the twin objectives of higher service level and lower inventory. This is done under the stream of work called ‘optimisation’. The more we work on such optimisations, the more we accept the current level of internal capability of the organization and its process efficacy as given.
Real benefits accrue when we break this compromise and improve on both the parameters simultaneously, i.e. attain higher service level with lower inventory. It means breaking some of the paradigms commonly found in supply chains, e.g. dependence on aggregate forecast for daily supply chain actions.
Do you challenge the underlying assumptions before optimising your supply chain?