Transforming Supply Chain Control from Push to Pull.
As many readers of this post will already know we have struggled for years trying to get ERP/MRP push type control systems to perform as promised and meet customer demands. I remember those old days because in the late 80’s I was working for an American owned company who had been brain washed into thinking that these systems were the only way forward for modern progressive companies. Years went by and our inventory grew whilst overdue orders and customer service problems increased. New systems costing $ Millions were purchased and the debate raged over the best algorithms to use.
At the end of the day, head office would not remove ERP so I adjusted it and removed all push supply chain triggers and replaced them with pull, direct cell feeds and material kits etc. Only then did everything start to get better and the life expectancy of Production Control Managers improved. That was a long time ago and I’ve been “Adjusting” ERP/MRP systems ever since. In the best cases inventory levels have been reduced by 60%, kits and direct cell feeds are installed, all highly simple and visible. Pull type control is a key part of a Time Based Organisation.