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1.2.3. Rescheduling of product flow
Product flow in the supply chain is increasingly time-compressed. The lengthened supply chains
are now under pressure to compress order lead-times (time elapsing from the placing of an order to the
delivery of goods) in order to be competitive in a foreign market. There seems to be a variation of
lead-times, which can be attributed to differences in trading practices, degree of retail concentration,
level of ICT support and size of the country.
Time compression of product flow can save inventory costs, enable companies to respond more
rapidly to shorter life cycles of products as well as variations in demand, and increase reliability of
delivery. One way of rescheduling freight movement is by operating nominated-day delivery to
customers and introducing timed-delivery at factories.
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