With talk of streamlining processes in the supply chain, industry observers are constantly evaluating the most appropriate techniques for delivering the highest throughput for the fewest dollars. And now, synchronization has entered the conversation.

Simply said, synchronization is a technique for coordinating the independent and fluctuating requirements of each stage of the supply chain. It begins with unprecedented supply chain visibility, starting at the point of manufacture and continuing to the retail floor, says Sid Snitkin, vice president, ARC Advisory Group. Accordingly, understanding that "supply chains are systems of interdependent processes" is key in establishing a synchronized system of processes, he says. His comments were made at the recent ARC Forum in Boston.

Traditionally, he adds, supply chains have been viewed as a mélange of autonomous business units that established costly and excessive buffers to counter inconsistencies in the overall supply chain. "Synchronized supply chain strategies recognize the system issues and drive performance through process synchronization," Snitkin says.

He explains that although demand-driven supply chains can improve throughput, synchronization can extend demand-driven strategies through enhanced visibility. Instead of increased agility in responding to supply chain demands, a synchronized system is a proactive system that allows for fluctuations in throughput.

Building on the philosophical view of an "ideal" supply chain, Steve Banker, service director, supply chain management for ARC, comments that the establishment of standards in real-time visibility and the utilization of data can help a supply chain migrate toward synchronization.

Banker warned that in practice, synchronization is "not a cure all." He explains that the introduction of massive amounts of data—from RFID or similar technologies—can overwhelm a supply chain, and will create completely new processes. New receiving and putaway processes might be required, for instance. In addition, a different perspective must be taken on inventory management. RFID will need to migrate to manufacturing to facilitate heightened visibility upstream, he states.

Obstacles that continue to stand in the way of synchronization include a less than robust information infrastructure to handle the massive amounts of RFID data needed to support synchronized visibility, Banker says. Further, many companies will need to invest in new master data management systems, proving a costly software and hardware expenditure.

And, as always, employees "can be wary of change," he mentions. Agility, speed and accountability issues may arise in revamping a supply chain, Banker comments.