Ronald W. Bohl, Senior director supply chain, Eli Lilly about Eli Lilly's Synchronized Lean Production
"It is not about improving the accuracy of the forecast and reducing the amount of uncertainty in the future, it is about eliminating the need for certainty."
Ronald W. Bohl, Senior director supply chain, Eli Lilly
Eli Lilly adopted a supply chain excellence initiative in order to reduce costs and meet changing market requirements. To reduce the need for certainty in supply chain planning and efficiently synchronize production and distribution, the company introduced four Lean SCM concepts to its supply chains: aggregate forecasts, pull-control using VMI, postponement strategies, and Rhythm Wheels for production planning and scheduling. These innovations enabled them to substantially reduce lead and cycle times as well as inventories along the supply chain. Furthermore, such supply chain optimization reduced the need to invest in costly new resources.
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