If you want to be successful in today’s market consider using this tag line. What reminded me of this is discussions I have had with Jeff Slater of Sonoco on the Supply Chain, Bob Sproull, author of The Ultimate Improvement Cycle and this recent video on the American Express Open Forum, Delivering What the Customer Wants.

Customers are demanding shorter Supply Chains and more customization. Their trade-off is that they are willing to wait for a very short-on-time delivery and the faith not that the product or service will be perfect, but that it will be supported and corrected if there is a problem. The Internet has made people accustomed to buying things sight unseen if they have trust in the people and organizations behind the product. Does anyone mind when the product says Beta on it?

However, how can a company make money with customization and supply chains being the 2 biggest drawbacks to efficiencies? The first thing I would let go of is the word efficiencies. That seems to me an out-dated word still being used by cost accountants. The Theory of Constraints utilizes measurements using the term of Throughput which I believe has a lot more bearing on the health of a company. Most companies also fail to realize that the “asset” of inventory actually penalizes you in your supply chain and typically reduces your time to market.

Delivering in the Immediate Moment is typically not about production time, it is about policy constraints and having a supporting system in place to support that goal. Building a Value Stream Map can clarify many of these issues. However, first things first, remove the word efficiency and add the word throughput to your vocabulary.

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Application of Lean Six Sigma to the Supply Chain

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