Adaptive Change

CIOP is an end-to-end supply chain certification program that focuses on practical aspects in addition to the theoretical concepts. For example, a typical supply chain certification may teach what is cycle counting and how to do the ABC classification. CIOP starts with these fundamental concepts and goes on to teach the participants to develop the cycle counting policy of an organisation, 10+ criteria used in ABC classification, multi-criteria ABC classification and cycle counting best practices to increase the efficiency and effectiveness. In case of CIOP, you learn the concepts and will be ready to implement in your day-to-day job in supply chain. The pedagogy is structured such a way that all the concepts are explained with industry examples, which makes CIOP as the preferred training and certification program for supply chain within the industry.

When it comes to managing manufacturing processes and supply chains, two contrasting but interconnected ideas are at play. On one side of the spectrum are "production" or "raw materials" suppliers who typically provide low-cost raw materials and components that are then used in manufacturing operations. On the other side are "consignee" or "manufacturer" manufacturers who typically contract with the production suppliers to package and transport the finished goods to their destination.

Understanding the difference between production and inventory can help you fine-tune your warehouse operations and thereby increase your profitability. In this post, identify technical change and adaptive change, describe the key differences between these two concepts and offer examples of how they influence warehouse operations.

The key differences between production and inventory require adaptive change strategies that are tailored to each organization's unique set of challenges. In a nutshell, production-to-outlet demands a lot of and therefore requires a lot of care when managing the stocks and logistics of raw materials. On the other hand, inventory-to-production (IP)
demands less shelf-life but more flexibility and therefore requires more attention when managing inventories. Both these concepts require managing the complexity of supply chain processes and the inherent uncertainties inherent in them. Hence both these concepts involve substantial set-ups, implementation, training, maintenance and revision.

What makes production-to-outlet and inventory-to-production (IP)
adaptive changes? First, production-to-outlet demands are typically implemented before an IP product is ready for shipping; whereas inventory-to-production (IP)
occurs after the product has been shipped. Second, although the inventory-to-production (IP)
requires less care in the supply chain, it still involves significant set-ups, implementation, training and maintenance. Lastly, although an inventory-to-production (IP)
process can be relatively straightforward, an IP requires the expertise of a large number of personnel across the entire supply chain. These people specialize in different areas and have very different skill sets. Hence, they need to be located in a place where they can work together.

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