ABSTRACT

The business functions of an organization have, for a long time, focused on stability rather than on change. Chart 10.1 re-emphasizes that change will occur when segmentation is introduced. For example, accounting, finance, personnel, the legal department, most upper management, and marketing would love nothing more than to have steady, stable growth. Operations, traditionally, would love a perfectly balanced operation with just the right amount of inventory, just the right workforce, and no problems. However, one of the competitive lessons we have learned is that stability breeds failure. If we try to stay where we are, we will be run over. Change happens to us whether we like it or not. The climate changes, competition changes, the market changes, etc. Optimizing a Supply Chain is the process of optimizing a continuously changing environment.