Operations Rules: Delivering Customer Value Through Flexible Operations

In recent years, management gurus have urged businesses to adopt strategies such as just-in-time, lean manufacturing, offshoring, and frequent deliveries to retail outlets. But today, these strategies may be risky due to global financial turmoil, rising labor costs in developing countries, and volatility in commodities. In Operations Rules, David Simchi-Levi highlights the importance of flexibility in operations to connect customer value with operational strategies. He provides scientifically and empirically based rules to improve operations performance. Flexibility allows firms to innovate and adapt their supply chain strategies effectively. Successful companies like Amazon and Wal-Mart focus on different market channels and customer values—Amazon offers large selection and reliable fulfillment, while Wal-Mart emphasizes low prices—each aligning with their operational strategies. Simchi-Levi's rules regarding channels, pricing, product features, value-added services, procurement, and IT, help transform operations from intuition-based to a science.