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Slow down to speed up your Supply Chain.
Various functions in a company’s supply chain have a tendency to speed up their operations. They feel it would lead to higher efficiency and lower costs.
It’s a myth which needs to be busted as it often causes more harm than benefit.
The objective of the extended supply chain should be to smoothen end-to-end flow of material. It starts with input materials coming from vendors, passes through manufacturing plants, and ends with finished goods in the hands of consumers.
The rate of flow should match the demand coming from consumers. That’s what sets the speed of the entire supply chain. We should respect consumer demand and try to fulfil it at the pace set by consumers.
If we speed up flow in any one leg of the supply chain, it will result in choking of the pipeline and stale products to consumers, besides creating stress in material handling.
At times, we must slow down to speed up flow through the supply chain.