The Rule of 80/20 is not Sustainable

Art’s Law #3 1% = 50%

The 80/20 Rule is not sustainable for problem resolution. We need to think about 80/15/4/1. Where the last 1% of demand typically represents 50% of business complexity.

The last 1% of demand or purchases create 50% of the customers, suppliers, or product numbers.

Look at eliminating the last 1% by;

• Eliminating and stop offering these part numbers.
• If must keep the products, use 3D or additive manufacturing to supply them.
• Use 3PLs is to manage low volume and cost purchases.

Envision how much complexity can be eliminated without the last 1%!