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
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
Core Supply Chains can be more Agile with MTO and ATO
MTO and ATO Providing Availability of products for customers is governed by the management of inventory, capacity and lead times. Of the three, operational capacity within a business is the resource least influenced by external events and decisions. As discussed in the previous blogpost, Make to Order (MTO) includes production operations that transform materials, and Assemble to Order (ATO) is … Read More
Operations that can respond to changes in Supply Chains
Operations model The current geopolitical actions add more Uncertainty in a business, which is the driver of risk, so enterprises could be reviewing their business model. The Supply Chains group, or its functions of Procurement, Operations Planning and Logistics will provide input to the decision process. This input should provide options concerning the positioning of Operations from the perspective of … Read More