How to block your own distribution channels

Late Night Discussions on the Theory of Constraints
By Eliyahu M. Goldratt
Compliments of North River Press

Late Night Discussion: Number 1
How to block your own distribution channels – a discussion on the automotive industry

“Proximity is not just a matter of geography,” I mutter as if to myself, but this time I succeed in triggering a reaction.

“Yes, you’re definitely right,” Jonah replies and leans forward to stir the ashes from his bulky cigar, “and those who choose to ignore it are paying very dearly.”

Before the thick carpet of silence once again engulfs us, I hurriedly throw out the first cliché that comes to mind, “the Japanese.” Lately it seems as if this always stirs up the conversation.

It doesn’t fail. “Alex,” Jonah asks me, “why do we tend to point to the people who do the logical things and not to the ones who stubbornly refuse to recognize the changing nature of reality?”

But this time I feel that my Israeli friend has gone a little too far. “We haven’t lost yet,” I say in somewhat hurt voice. This Japanese stuff is a double-edged sword, especially when you talk with foreigners.

“Hey, come down from your high horse.” Jonah is smiling at me. “I don’t relate to the hocus-pocus of cycles in global economy and the such. I’m just alluding to a much more practical day-to-day behavior that we see all around us in our industries.”

This doesn’t help much, I’m still irritated. “Would you care to elaborate?” I inquire stiffly of my Israeli friend.


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How Cadillac reduced delivery lead time from 45 days to 24 hours by using TOC Concepts
by Dr. Eliyahu M. Goldratt  

This excerpt from the Goldratt Satellite Program (GSP) on Distribution – Pull System and Replenishment, shows how changing the paradigm of inventory, distribution and replenishment, helped Cadillac achieve a reduction in the distribution lead time to the end customer, from 45 days to 24 hours, and at the same time increasing the number of options presented.

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