At the time Mr Taiichi Ohno, architect of the Toyota Production System, stated we should no longer make large amounts of stock and then try to sell it (push), but need to be aware of the market (pull), this meant a turnaround in our thinking. Nowadays, “push” and “pull” are two of the most used terms in SCM. So far, so good. Nevertheless, what...
Lean is still misunderstood by many. While large groups use Lean largely as a toolbox, others will consider it as a change philosophy. Both views unfortunately do not do justice to the Lean concept. The group that supports Lean as a change philosophy justly refers to the unexpected forces that it can release on the shop floor. Now I will be the...
Without doubt, S&OP has been one of the most popular management buzzwords of the past decade. Gurus, consultants, blog writers and recently also software suppliers have claimed the topic. S&OP is hot and everybody wants to get a piece of the cake. Rightly so, because S&OP is a powerful concept with huge potential. Potential, that more often than...
‘Logistics is logical thinking’ is a statement that I often hear. Tempted to agree, I start to wonder that if this is true, how can it be that I am so often confronted with very different solutions to very similar problems. Could it be that logistics is not as logical as we often seem to think? In case of increasing lead times, one logistics...
When asking a financial director what he thinks the cost of inventory is, he will undoubtedly give an answer like the Return on Capital Employed (ROCE) or the Weighted Average Cost of Capital (WACC). When asking a logistician the same question, his answer will be the sum of interest, storage space and risk. Unfortunately both are in the wrong,...
Since the eighties we know that customer orders penetrate our company until the Customer Order Decoupling Point (CODP). For the fist time, Hoekstra and Romme made the explicit distinction between production to order and production to stock. With hindsight it seems hard to believe that this was such a big discovery. How difficult can it be? You...