A routemap to responsiveness
As we observed earlier, conventional supply chains are typically designed from the factory outwards. In other words, they tend to be structured to enable the company’s internal efficiencies to be optimised. So, for example, in a manufacturing environment the objective has often been to achieve low-cost production with high levels of capacity utilisation with the consequent need to warehouse products which are manufactured in economic batch sizes.
By contrast, a customer-driven supply chain recognises the primacy of the needs of the customer. Rather than the ‘one size fits all’ philosophy of the conventional supply chain, the implication of adopting a customer-driven approach is that there will be a high level of ...
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