Limitations to time-based approaches

Despite the clear benefits of time-based approaches to logistics management described above, there are often barriers to its application, as well as bmltations to its relevance. 

A particular issue with the costs involved in speeding up logistics processes in the supply chain is the distribution of those costs between companies in the supply chain. It is well known that JIT deliveries, for example, may generate signihcant costs for suppliers whereas the customer may experience most of its benefits (such as low process inventories and rapid delivery). Toyota is capable of manufacturing a car in five days but has decided not to do so because of the pressiue it would place on its suppliers and its distribution processes, creating costs that are not expected to be outweighed by revenue opportunities in current market circumstances. 

P-time and D-time are measures of performance of the supply pipeline. They are explained in section 5.2.2, but let us first look at the importance of time as a performance measure. 

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