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Manage Flows not stocks!

When using the word Supply Chain, we consider global transformation as a sum of distinct processes linked together. This is a consequence of the mindset created by the MRP principles:
each step of a process (from components, through sub-assemblies till finished products) is generating an inventory in order to allow the execution of the next step and this till the last one.

This fact has focused supply chain organizations to build inventories, prerequisite of the outbreak of the next step.

The use of the word Supply Flow suggests a different view of this activity: the aim is to synchronize the processes' speed and planning in order to achieve the optimal global transformation.

We speak about arrival times, completion times, consumption times, in order to smooth the physical flows. Our tools are the Capacity Plan, the Visual ReOrder (VRO), the Kanban, the Build To Truck (BTT) and we use the Inventory Efficiency in order to control our system overall. Our Human Organization respects the splitting of the Team in charge of sizing the flows from the Teams responsible of planning or managing the physical flows.
Flow or Inventory, Movement or Immobility...

Today, it is clear we need to manage flows, not stocks!

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