The Distribution Solution

The Distribution Solution increases availability dramatically and reduces lead-time and inventory dramatically, increasing throughput dramatically in the process.  Our Distribution is based on Eli Goldratt's TOC Distribution Solution.

Indicators

Frequent over-stocking, stock-outs and cross-shipments - and growing inventory throughout the system.

Ultimate Goal

Dramatic increase in availability and throughput on lower costs and inventory.

Performance-Limiting Problem

Demand is intractably unpredictable.

Conventional Solution

The conventional solution is to move inventory to the fringe, close to where the customer is, to reduce lead-times and stock-outs.

Simple Breakthrough Solution

Move inventory as close to production as possible (where unpredictability is lowest) and replenish on a daily or weekly basis, at discounts for volume sold over time, rather than on order size.  This enables retail to carry a wider product range and never run out of stock, on greater liquidity.