Bringing It All Together
This chapter presents an overview of how Lean supply chain thinking can address the six reasons for poor on-time, in-full delivery. It identifies six key reasons why businesses fail to deliver on time and in full to their customers. They were, the customer cannot forecast accurately; long lead times, big batch sizes and big shipment quantities; material shortages; poor factory performance; and poor warehouse and logistics practices. The chapter discusses how to measure and improve supply chain performance and where to start on manufacturer's delivery performance transformation. It addresses the problem of poor customer forecasts, which have recognized the limitations of forecasting and avoided the use of forecast-driven material requirements planning (MRP) replenishment systems. The chapter explains business metrics essential to driving supply chain improvement. The most important of these is delivery in full, on time (DIFOT). The chapter helps to understand suppliers' processes and supply chain performance.