Operations and supply chain for founder led lower-middle market companies

This page is for founder led lower-middle market companies with 5 to 50 million in annual revenue. The aim is reliable delivery, healthy margin, and clear control of flow from order to cash.

Questions and short answers

How do I spot and remove the current bottleneck

Map the path from order to cash and measure flow at each step. Look for growing queues, long cycle time, and high rework. Confirm the one constraint and protect it with the right skills, tools, and buffers. Move work that does not add value away from the constraint. Track throughput, work in progress, and lead time weekly until the constraint shifts.
Find and fix the bottleneck

What should my inventory turns and fill rate targets be

Set targets by item class and customer promise. Many distributors start around four to eight turns overall with A items higher. Many light manufacturers aim for six to twelve turns on finished goods with raw materials lower. A good fill rate target is ninety five to ninety eight percent for A items and lower for B and C items. Confirm with customers and watch stockouts and excess together.
Set inventory and fill rate targets

How do I decide between in house production and outsourcing

Score options on speed, control, cost, and risk. Keep in house when the work is strategic, drives quality, or protects lead time. Outsource when a partner can deliver faster or at a lower total cost with stable quality. Model demand swings, minimum order size, and logistics. Start with a pilot and a clear exit clause either way.
Make versus buy decision

What service level agreements should we set with suppliers

Set on time in full, lead time, quality measures, and communication rules. Include corrective action timing, price adjustment rules, data sharing, and review cadence. Use simple tiers so critical suppliers carry higher targets and faster response. Add remedies that focus on fixing causes first. Hold a quarterly review and share your demand plan.
Supplier SLA checklist

How do I design an S and OP meeting that actually works

Run a monthly cycle. Start with a product review to confirm changes. Hold a demand review to lock the forecast by item class and region. Hold a supply review to check capacity, labour, and materials. Use a pre S and OP to settle options and an executive S and OP to set one plan and one set of numbers. Keep a one page pack, a risk list, and clear decisions with owners and dates.
Design S and OP that works

Related links

  • Strategy and growth

  • Product or service portfolio

  • Finance and profitability

Last updated: August 27, 2025

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