Uncertainty in supply chains a reality The three broad inputs to Uncertainty are Complexity and Variability, discussed in previous blogposts and Constraints. As an input to Uncertainty, Constraints have been a minor factor, but increasing geopolitical tensions and threats from climate change will make Constraints more visible. A Constraint (also called a bottleneck) is defined as ‘something that controls what … Read More
Reducing Complexity in Supply Chains is not a project
Complex and Complexity in Supply Chains The current disruptions in some supply chains provides Uncertainty for businesses concerning the future state of international trade and its effect on operating and investment decisions. But Uncertainty in supply chains contains three elements: Complexity, Variability and Constraints, which are closely linked, with Variability discussed in the previous blogpost. Being complex means that a … Read More
Lead Time variability calculation measures Supply Chains
Lead Time has a cost Lead Time variability should be an important input for Operations Planning and Scheduling. However, although lead times are a factor in MRP calculations, few companies update lead times as they change, using the same values inputted when the ERP system was installed. As discussed in the previous blogpost, the lead time from a supplier is … Read More
Variable Lead Times are a challenge in Supply Chains
Lead Time terminology Lead Time is an easy concept to understand, but difficult to control when external to your business. Lead Time is the amount of time between the commencement and completion of an operation or process. Transit Time is the time taken for an order to be delivered to its final destination from a designated pick-up point. ‘Order to Ship’ Time … Read More
Enhanced Resilience in Supply Chains is the new normal
A systems failure On April 28, millions of people and metro systems, airports hospitals and communication systems across Spain, Portugal and parts of France were affected by an unexpected power outage. Across Europe, the aim is for an integrated electricity system, but what about small events far away that can quickly escalate into serious emergencies, without national governments being aware? … Read More