5 core principles of supply chain excellence.pdf (Lazy_Khan)

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  • Date uploadedJun. 21st '14
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Five Core Tenets of Achieving Supply Chain Excellence
BY PUNEET SAXENA

f you were associated with manufacturing and distribution operations a few decades ago, you may have heard of
Dr. Eli Goldratt, the theory of constraints and his book titled “The Goal.” The novel related the story of a fictitious plant
manager, Alex Rogo, who battled to turn things around at a struggling production plant using innovative, yet basic,
techniques around bottleneck management. Alex discovered, as did the reader, that optimizing locally everywhere
in the plant did not result in the global optimum; instead, manufacturing throughput was best enhanced by
managing critical production constraints effectively. The book succeeded in communicating that the ultimate goal
of a business enterprise was to be profitable, ahead of any other seemingly important numerical metric.

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