Decoupling inventory is the process of setting aside
extra parts or raw materials to ensure there aren’t any delays or disruption in
the production of finished goods in the event of a supply shortage or
machinery breakdown.
In simple terms, decoupling inventory is
a type of safety stock, but what it hedges
against is slow production and stoppage, not unseen fluctuations in demand, acting
as a buffer that allows to continue fulfilling orders even as production issues
are happening.
The main benefits
of decoupling stock are:
Increased efficiency: Can increase efficiency across production lines and
supply chains by allowing each stage of production to work autonomously even in
the event of a disruption.
Increased flexibility: Helps mitigate the effects of unforeseen circumstances helping
businesses become more agile and ready to respond to unexpected disruptions in
the supply chain.
Perform
spot maintenance on parts of your manufacturing equipment: Decoupling
inventory is particularly advantageous in the event of a facility outage for
repairs or machine maintenance.
Provides Protection During Periods of
Uncertainty: When
manufacturers are unable to obtain sufficient raw materials to finish producing
a product, decoupled inventory offers protection to continue production without
any delays.
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