Monday, 26 December 2016

About Time Compression and Competition in the Supply Chain

Many businesses have still not jumped on board with time compression. The main reason for the slow adoption of this approach is that it requires a full commitment from the entire business, going from the top all the way down. Another reason is simply because any huge change in a business is challenging, especially when all departments may be affected to benefit each department and the supply chain as a whole.

Time compression addresses demands from customers and stiff competition. The world now expects better value, more options and higher levels of customer service. Companies that are able to meet these demands and focus on time based competition are the ones who win the battle. Supply chains are becoming more complex, with many companies choosing to source products outside of the traditional supply chain but also focusing on ensuring error free deliveries.  Demand for shorter lead times continues to rise and so cycle times are now an important consideration for Western companies. Many companies now outsource to third party logistics providers. By outsourcing, the firms are able to benefit from cost reduction.

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