SUPPLY CHAIN BEST PRACTICES
Designing for Variability
Variability doesn’t disappear just because the buffers do.
Every operating system has to absorb variability somewhere. In supply chains, that usually means some combination of inventory, capacity or time.
Reducing one buffer can improve efficiency. It can also move pressure somewhere else. Lower inventory may require more responsive capacity. Tighter lead times may require more slack. Higher utilization can increase waiting and make recovery harder when conditions change.
The useful question is not how to eliminate buffers. It is where the business wants them, what they cost, and which forms of variability they are protecting against.
Resilience starts with understanding those tradeoffs rather than assuming that removing slack removes the underlying uncertainty.