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Where should you prioritize flexibility improvement in Supply Chain?
Most supply chain teams recognize that the backend supply chain needs to be more flexible. They launch a host of initiatives across the entire chain, which often overwhelms the team members. How should we pinpoint where to improve flexibility?
If we can work on only one area at a time, it should be the constraint operation. If it is in manufacturing, let’s work on reducing batch size, faster changeovers, product sequencing based on buffer penetration at the constraint equipment. If the business constraint has been pushed to the market, we should improve the production bottlenecks.
Leveraging constraints and bottlenecks through improved flexibility has a multiplier impact on the overall business performance.