lead times

Managing manufacturer lead-times to reduce stock levels is not an exact science. Lead-times are inaccurate. Manufacturers favour one customer over another without considering their respective order creation dates. Many suppliers communicate their lead-times by technology and not by manufacturing part numbers. And of course, lead-time discrepancies exist in the same technology family. Inaccurate lead-times lead […]

You’ll sleep better with supply lead-times updated every week. When I ask supply-chain executives about their action plans to keep stock low or decrease their stock levels, they usually suggest: improve the S&OP process (the #1 action in efficiency); increase VMI or CMI coverage*; negotiate short lead-time programs against weekly forecasts; watch orders which need to be rescheduled or […]

Part 2 with Excel simulation on how to reduce inventory with safety lead-times If you haven’t read ‘Part 1: how to reduce inventory with safety lead-times’ it is a short analogy on how electronic board production is like organizing a meeting between Elon Musk and 9 young new interns. Please read if you have any […]

Part 1: how to reduce inventory with safety lead-times (Part 2 here) I discovered the electronic component supply-chain in 2008. Back then, I was in charge of a French set-top-box OEM manufacturing & supply-chain. What struck me was how complex the electronic supply-chain was compared to my previous experience in the automotive industry. The explosive […]