As I write this, the Memorial Day weekend is in the offing. There will be lots of folks hitting the road to go various places. Most of them will be taking freeways, the Interstate system, and major highways wherever possible on their journey.
It’s all about FLOW!
When we are intent on getting to our destination, what is relevant to us is one KPI (key performance indicator): the number of miles we can cover in the shortest amount of time. That is: Throughput!
We avoid things that disrupt the FLOW!
We avoid stoplights like the plague. THROUGHPUT is what matters to us. How many miles pass beneath the wheels of our vehicle in pursuit of our goal (read: destination).
Even our mileage improves!
Even though we may not be paying that much attention to our efficiencies (that is, miles-per-gallon), we have this knowledge that when FLOW is increased (that is, average miles-per-hour) and when blockages to FLOW are decreased (that is, stop signals and the like), our net efficiency is dramatically improved.
Almost without our thinking about it, as we focus on FLOW and avoid disruptions to FLOW, our efficiencies are improved.
The same is true with your supply chain!
By the way, precisely the same thing is true in your supply chain.
If you will focus on FLOW, two things tend to happen auto-magically:
- More of your GOAL is achieved (you will make more money, cash flows improve, customers are happier)
- Your EFFICIENCIES improve (when properly measured in terms of system Throughput/Operating Expenses [T/OE])
Next time you’re driving on a freeway, you should think about this. Then, give us a call or contact us if we can help you FOCUS on FLOW and improve your supply chain.