Enhancing Supply Chain Efficiency ‐ The Strategic Lead Time Approach

Accepted logistics theory states that short lead times are consistent with high accuracy of customer service and low levels of inventory. Yet global or theatre based manufacturing strategies are lengthening lead times, extending supply chains and increasing risk of both excessive inventory and poor customer service. Logistics strategies to manage the conflicting interests of manufacturing and marketing and distribution have proved difficult to evolve. Strategic Lead Time Management is a computer modelling approach designed to identify and maximize the value added: cost added ratio in supply chain design. It is based on simulating the relationship between organisational process and procedure and the flow of inventory through the supply chain. This paper describes the approach and the results that can be achieved.