Today’s realities are those of global integration: a world that is highly interconnected — economically, socially, and politically — and, at best, operating as a family of systems. Our businesses are comprised of interdependencies, variability and organizational constraints (e.g., existing assumptions, policies, measures, methods, and best practices) all of which add to the complexity of managing. It is this complexity of managing that, in turn, drives the need to configure our businesses to operate more as a system while enabling decision-making that is faster, more precise, and predictable with regard to inventory flow and supply chain performance.

Demand-Driven Performance provides the framework for configuring, and managing businesses to operate as a system, and the Theory Of Constraints (TOC) Thinking Processes provide the systems thinking required for faster, more precise and predictable decision-making, the combination of which enables innovative Supply Chain (system-of-systems) Management.

Whether your supply chain involves only sourcing and distribution, or sourcing and conversion (production, repair, refurbish...), or it runs across multiple organizations with various conversion processes, the Theory Of Constraints (TOC) concepts are applicable.

Next: Integrating and Aligning Supply Chains and their Supporting Processes (DDPSC01)

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