Performance Evaluation of Process Strategies Focussing on Lead Time Reduction Illustrated with an Existing Polymer Supply Chain

Abstract

The ability to fulfil customer orders is crucial for companies which have to operate in agile supply chains. They have to be prepared to respond to changing demand without jeopardizing service level, i.e. delivery performance is the market winner (Christopher and Towill, 2000; Lee, 2002). In this context, lead time reduction (average as well as variability) is of key interest since it allows increasing responsiveness without enlarging inventories. In front of these possible levers (e. g. Chandra and Kumar (2000), the question arises of the dynamic assessment of potential process improvements for a specific supply chain and moreover a combination of potential process improvements related to an overall strategy (responsive, agile, etc.). Using process simulation, we demonstrate how the coordinated application of strategic supply chain methods improves performance measures of both intra- (lead time) and interorganizational (service level) targets.