Image for TOC in Supply Chain Management

TOC in Supply Chain Management

TOC, or Theory of Constraints, in supply chain management is a methodology focused on identifying and addressing the most limiting factor—or bottleneck—that impedes the overall flow of products or information. By optimizing this constraint, organizations can significantly improve efficiency, reduce delays, and enhance throughput across the entire supply chain. The core idea is to continuously identify the constraint, exploit it to its maximum potential, and then elevate or improve it, ensuring smoother operations and better delivery performance. Essentially, TOC helps organizations prioritize fixes that unlock the greatest improvements in their supply chain.