From supplier to factory,
factory to distributor, distributor to reseller, reseller
to consumer — regardless of the link in the supply
chain, the right parts, products or services must be available
at the right place at the right time.
TOC methodology can be used to optimize the movement and
availability of materials along the entire supply chain,
thus keeping inventories
to a minimum while keeping response to customer orders at
a maximum.
TOC provides the best answer to supply chain questions
because it focuses on the constraints, or limiting factors,
in the
chain. Properly sized buffers and one-for-one replenishment
signals make sure inventories are always at the “right” places
and the “right” levels– not too much, adding
carrying costs, and not too little, leading to stock-outs.
The significant difference and advantage of the Distribution & Replenishment
solution as compared with other lean solutions is found in
Buffer Management—providing early warning of variability
in the system or that the market is changing—allowing
the organization time to make decisions and take action. |