-- Henry Ford

When Henry Ford wrote the lines above in My Life and Work in 1922, he was describing what decades later was referred to as a just-in-time inventory strategy. A strategy, which cuts down waste, aligns production with demand, and dramatically improves efficiency and ROI for an organization. And, the best part about it is that it works just as well whether the economy's booming or in a depression.

Over the years, many organizations typically in the manufacturing sector, have adopted it in some form or the other -- from the Piggly Wiggly supermarket chain's re-stocking policy to the iconic Toyota Production System that it inspired in turn. And, of course, the acronyms and jargon that have accompanied it are legion: stockless production, continuous flow manufacturing (CFM), world class manufacturing (WCM), lean manufacturing...

The benefits are undoubtedly high. And, yet, there are issues that can derail the system, particularly during a slowdown. The major problem with just-in-time operations is any large change in supply or demand leaves both suppliers and downstream consumers vulnerable.

Among other terms, this is referred to as the 'Bullwhip Effect' -- when distorted information within a supply chain causes excessive inventories, lost revenues, messed up production schedules and bad customer service. I wonder how many organizations are groaning under stock pile-ups or missed delivery schedules or customers that are refusing to pick up orders. The culprit, quite obviously, is the data or information gap within the supply chain which makes a mockery of all forward planning.