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Law of Supply Chain Physics

At Cadent Resources Group LLC, we have developed a concept called Supply Chain Physics. We use this concept to foster communication and accountabilities across functions and improvements within the enterprise.  It also serves as the foundation of our DemandCaster Demand Planning and Inventory optimization software.

Law of Interdependency:

  • Inventory, Service, Quality and Costs are interdependent.  Like the game Whack-a-Mole push on one and the other three are effected. 
  • In business improvement, functional improvement can only go so far. A point of diminishing returns is reached. Thereafter all further improvements require cross-functional coordination.

Law of Constraints:

  • There are limits to how much of any item can be produced in a finite period of time.
  • There are limits to how fast and in what quantities goods can be shipped from Point A to Point B.

Law of Information:

  • Information moves at the speed of the internet.
  • The speed the information moves is independent of the accuracy of the information.
  • Information moves much faster than the lead time to order or replenish materials or finished goods.

We have presentations available on our Supply Chain Physics in the events page of our site.  You can view these presentations by registering on our site.  Once registered you can also download a PDF copy.


  

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