Are you monitoring lead-times?

24. November 2021

The importance of responsiveness has changed over the last couple of years due to more and more Supply Chain disruptions.

In the past, responsiveness could be defined as the ability of the supply chain to respond purposefully and with appropriate timeframe ๐ญ๐จ ๐œ๐ฎ๐ฌ๐ญ๐จ๐ฆ๐ž๐ซ ๐ซ๐ž๐ช๐ฎ๐ž๐ฌ๐ญ๐ฌ. Mature Supply Chains monitor those lead-times versus standard lead-times and follow up on exceptions in the IBP process.

Today, responsiveness could be defined as the ability of the supply chain to respond purposefully and with appropriate timeframe ๐ญ๐จ ๐š๐ง๐ฒ ๐›๐ฎ๐ฌ๐ข๐ง๐ž๐ฌ๐ฌ ๐๐ข๐ฌ๐ซ๐ฎ๐ฉ๐ญ๐ข๐จ๐ง. Here many Supply Chains waste a lot of time and are not even aware.
-What is the time between the occurrence of a business disruption and full leadership awareness and understanding of the issue?
-How long does it take to establish a functionality that is leading to an acceptable level of customer satisfaction and organisational health?
-How long does it take to achieve the full integration of improved capabilities to return to full & even enhanced functionality?

Most Supply Chains could gain a lot by systematically improving the response time to business disruptions. Please check out the comments for more info on iBsing and our peer network for SC leads and S&OP practitioners.

โ‡จ 1. ๐‚๐ฎ๐ฌ๐ญ๐จ๐ฆ๐ž๐ซ ๐Ž๐ซ๐๐ž๐ซ ๐‹๐ž๐š๐๐ญ๐ข๐ฆ๐ž: time between customer order placement until receipt of the product by the customer
โ‡จ 2. ๐๐ฅ๐š๐ง๐ง๐ข๐ง๐  ๐‹๐ž๐š๐๐ญ๐ข๐ฆ๐ž: time between reception of a demand signal from the Customer to the submission of the โ€œFinished Goods โ€“ Purchase Orderโ€ by Supply planning to Production Planning
โ‡จ 3. ๐๐ซ๐จ๐œ๐ฎ๐ซ๐ž๐ฆ๐ž๐ง๐ญ ๐‹๐ž๐š๐๐ญ๐ข๐ฆ๐ž: time between the placement of a โ€œRaw Material – or Component -Purchase Orderโ€ with the supplier and availability of the raw materials or components for production
โ‡จ 4. ๐…๐ข๐ง๐ข๐ฌ๐ก๐ž๐ ๐†๐จ๐จ๐๐ฌ ๐‹๐ž๐š๐๐ญ๐ข๐ฆ๐ž: time between reception of the โ€œFinished Goods โ€“ Purchase Orderโ€ from Supply Planning and the availability of the finished goods at the local warehouse for Sales
โ‡จ 5. ๐€๐ฐ๐š๐ซ๐ž๐ง๐ž๐ฌ๐ฌ ๐‹๐ž๐š๐๐ญ๐ข๐ฆ๐ž: time between the occurrence of a business disruption and full leadership awareness and understanding of the issue, its context and its potential implications on the organisational stakeholders
โ‡จ 6. ๐Œ๐ข๐ญ๐ข๐ ๐š๐ญ๐ข๐จ๐ง ๐‹๐ž๐š๐๐ญ๐ข๐ฆ๐ž: time between leadership awareness of a business disruption and establishment of a functionality that is leading to an acceptable level of customer satisfaction and organisational health
โ‡จ 7. ๐€๐๐š๐ฉ๐ญ๐š๐ญ๐ข๐จ๐ง ๐‹๐ž๐š๐๐ญ๐ข๐ฆ๐ž: time between leadership awareness of a business disruption and the full integration of improved capabilities to return to full & even enhanced functionality

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