Theory of Constraints Supply Chain Management & Distribution

It is designed for executives who want to learn how to improve the performance of their supply chain:

• Reduce inventory in the system

• Increase product availability
• Improve supply chain responsiveness to changing and uncertain demand

In many manufacturing environments, it is essential to make to stock. Often, the time it takes to procure raw materials and then produce the product is simply longer than customers are willing to wait. At the time the product is produced, it’s uncertain where it will be needed. The result is a dilemma for manufacturers. To maximize order fill rates to the consumer, inventory has to be carried in fairly significant amounts. However, that creates another problem: increasing costs for carrying inventory (obsolescence, interest, spoilage). So on one hand, the amount of inventory should be increased but, on the other, the amount of inventory should be reduced. Most supply chain solutions compromise one objective in favor of the other. 

In this workshop you will learn, using the Theory of Constraints (ToC) applied to the distribution problem, how to develop and execute an integrated strategy that resolves the problem without compromise. You will discover how, using an integrated approach, you can simultaneously reduce inventory and increase customer service.

You will take back to your company a powerful new understanding of the forces that create excess inventory and know how to govern good service to customers. You will be able to develop tactics that counteract demand uncertainty and improve plant flexibility. Finally, you will be to create a supply chain system that can be managed and controlled, integrating production, distribution and market planning.

The ToC Distribution solution delivers direct financial benefits several ways. It delivers an array of benefits affecting throughput, inventory, and operating expense in the plant, distribution and customer. The most important avenue of improvement is of course, increasing sales (throughput). The essence of the distribution solution is rapid replenishment; enabling increased availability of products with significantly less inventory - typically a 3^rd of current levels.

• Warren Featherbone improved margins 20% while doubling inventory turns
• Mercantile Stores increased margins 135% and reduced store space requirements by 50%
• Orman Grubb Furniture saw per-store revenues increase 20%-100%, lead times reduced 70%

This workshop is held in-house and we can modify it to meet the needs of your group.  To host, contact me at the number above.