06/23/2026
Last week, I talked about constraints in supply chain operations.
This week, let's talk about what happens after you identify one.
Many businesses spend time and money improving areas that aren't actually limiting performance.
The result?
People work harder, but the operation doesn't improve as much as expected.
Once a constraint is identified, the next step is understanding how to manage it effectively.
For example:
• If shipping capacity is the constraint, increasing production may create inventory buildup.
• If warehouse space is the constraint, receiving more inventory may create congestion.
• If staffing is the constraint, adding more work may increase delays rather than output.
One of the most important lessons in supply chain management is that every process is connected.
Improving one area without understanding the constraint can simply move the problem somewhere else.
A few questions worth asking:
• What is limiting performance today?
• How does that limitation affect the rest of the operation?
• Are resources being focused on the right problem?
• If the constraint improves, what becomes the next constraint?
Supply chain isn't just about moving products.
It's about understanding how the entire system works together.
Because the goal isn't to make every part of the operation faster.
The goal is to improve the performance of the operation as a whole.