Newton wasn’t thinking about the supply chain when he came up with his third law of motion, but it can certainly be applied to many common supply chain activities. 
For instance, I’ve recently seen several clients struggle to keep up with the increasing pace of smaller receipts and the resulting increase in labor and delays at the dock. While, at the same time, the purchasing groups in these organizations are lauded as heroes for increasing inventory turns and making more effective of use of the inventory dollars.
Do the associated inventory savings justify the inefficiencies imparted on the warehouse operations?
This is a classic supply chain scenario that requires a balanced looked at the overall operation to make sure that one aspect of the supply chain does not become optimized at the expense of another supply chain process up or down stream. And I suspect this same battle is going on in countless organizations across the country right now.
When you think about the big picture here, there are huge implications for both operational savings (think layout improvements and labor efficiencies) and improved inventory utilization (think reduced stock-outs at lower overall inventory levels). Where do you begin in order to analyze this situation?
I have some insights based on several client experiences, but I’d like to get some input from those of you who might be experiencing a similar situation in the current economic climate.
What practices have you set in motion to balance your supply chain? What practices should be set in motion?
-- Kevin
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Tags: inventory, time and cost, budget, collaborative supply chain