Response Management as a lean enabler
Michael Bittner has written a detailed piece entitled “Technology Enablers for the Lean Supply Chain” over at Technology Evaluation Centers. The core attributes of a Response Management solution are well aligned with the principles Michael talks about in terms of enabling a lean supply chain. In particular, Response Management:
> Can help you reduce your entire supply chain lead times to improve flow. In particular, Response Management reduces the time it takes you to respond to a change.
> Brings all the data from all the supply chain together into one system for visibility and response. This system can span the entire supply chain to include suppliers, partners, customers, etc.
> Turns planning into a pull-based process, so planning usage lines up with supply chain pull-based replenishment.
> Has all the data, all the calculations and the flexibility to measure and isolate (summary to detail) to get the right information, whatever it is, for the right people at the right time. Scorecarding provides a mechanism to define metrics, respond with them in mind, track them, drill through to the underlying data at any level, and see the projected impact of potential changes/decisions on the metrics.
> Can handle data from different systems, different companies and provide a holistic view of the entire supply chain.
Lean works best when the demand is steady, or at least steady at the component level. It has most problems when demand is very irregular (10,000 units next week, nothing for 6 months). Response Management, on the other hand, excels where the demand is most unpredictable and volatile. Response Management is both an enabler of a lean supply chain and has the ability to fill the gaps in standard lean flow.
