A research study by Arthur D. Little shows that many companies are not currently taking advantage of supply chain excellence practices or are not doing so fully. Excellence practices can help companies to identify the precise service levels below which any further decrease causes changes in the consumer’s decision to purchase. The study also identified the pull principle, which can help to reduce cycle times and inventory. Arthur D. Little’s experience shows that the use of the pull principle can raise the rate of complete, qualitatively flawless and punctual deliveries to 98 per cent and also makes it possible to reduce supply chain costs by 20-30 per cent.
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