Synchronous Demand Networks: Speed, Flexibility and High Return on Investment
John Cummings · Supply Chain Forum an International Journal · 2004
As opposed to the traditional Asynchronous Demand approach where information latency at each supply chain node causes excess inventory to accumulate, the Synchronous Demand Network is a synthesis ofjust-in- time and buffer management principles that yields far lower information latency and excess inventory. It leverages the capabilities of advanced information systems to deliver dramatic inventory reductions throughout the supply chain, thereby improving flexibility and responsiveness to change and uncertainty, increasing return on investment and improving both cash flow and profitability. Creating a Synchronous Demand Network is an exercise in optimizing and coordinating the entire system in such a way that it operates as a single, well-oiled machine. This is possible even when different organizations own or control different links in the supply chain.