What Is Decoupling Inventory?
FAQs
What is decoupled inventory?
Decoupled inventory separates the upstream supply chain from downstream processes using buffers of raw materials, work in progress, and finished goods. This protects production from fluctuations in supply and demand.
Why should you decouple your inventory?
Key benefits include increased flexibility, faster response times, lower costs, and building resilience against uncertainty and disruptions.
What are the main types of decoupled inventory?
Typical places to implement decoupling include raw materials, work-in-progress, finished goods, and maintenance/repair/operations inventory.
How can you effectively manage decoupled inventory?
Tips include real-time tracking with automation, supply chain communication, monitoring orders and lead times, having contingency plans, and continuously optimizing placement and levels.
What steps do you need to take to decouple inventory?
Main steps are: analyze current levels, forecast demand, determine buffer sizes, create replenishment schedules, and continuously monitor and adjust.
What results can you expect from decoupled inventory?
Companies typically see improved order fulfillment rates, faster response to demand changes, reduced costs, and protection from supply chain disruptions.
How can you get started with implementing decoupling?
First steps are to map your current process, identify potential buffer points, analyze historical data, and develop inventory level and replenishment plans.
