From supplier to factory, factory to distributor, distributor to reseller, reseller to consumer — regardless of the link in the supply chain, the right parts, products or services must be available at the right place at the right time.
TOC methodology can be used to optimize the movement and availability of materials along the entire supply chain, thus keeping inventories to a minimum while keeping response to customer orders at a maximum.
TOC provides the best answer to supply chain questions because it focuses on the constraints, or limiting factors, in the chain. Properly sized buffers and one-for-one replenishment signals make sure inventories are always at the “right” places and the “right” levels– not too much, adding carrying costs, and not too little, leading to stock-outs.
The significant difference and advantage of the Distribution & Replenishment solution as compared with other lean solutions is found in Buffer Management—providing early warning of variability in the system or that the market is changing—allowing the organization time to make decisions and take action.