The supply chain function is complex. It has thousands of interface points, both internal and external, and it is subject to millions of variables.
When things go wrong, there is rarely a simple ‘fix’.
As a result, many businesses have operated for years with seriously under-performing supply chains – to the extent that it becomes accepted as a fact of life, “Something that we just have to live with.”
The missed opportunities we found (and then resolved) are substantial:
- Product availability on the retail shelf – below 80%
- Factory output – 30% below potential
- Network inventory – 45% higher than warranted
- Transport spend – 37% higher than warranted
By taking a holistic view of a business’ operations (identifying which constraints on the business are real….and which are not) it is possible to re-engineer how the supply chain works – usually delivering a substantial size-of-prize.