The company that achieves a perfect match between the logistics lead time
and the customer’s required order cycle has no need of forecasts and no need for
inventory.
The challenge for logistics management is to search for the means whereby the
gap between the two lead times can be reduced if not closed (see Figure 4.3).
Reducing the gap can be achieved by shortening the logistics lead time (end-to-
end pipeline time) whilst simultaneously trying to move the customer’s order cycle
closer by gaining earlier warning of requirements through improved visibility of
demand.
Improving the visibility of demand
In ...
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