Email
sinha.rk.dr@gmail.com
Are we running our Supply Chain by rules?
Many companies run their supply chains by well-defined rules, which are easier for their teams to understand and execute. These rules have served them for years. The rules need to be, however, tweaked to accommodate new contexts.
Is there a downside to run supply chains by rules? Of course. Let me explain.
Rules are meant for highly repetitive contexts, which is the case for a major part of supply chain execution. These work in stable and deterministic scenarios. However, if the demand is stochastic and the market context volatile, pre-defined rules fail to serve.
It is better to run supply chains by principles, which apply to all contexts. Once we articulate the fundamental supply chain principles clearly, execution can be flexible and adapt to changing market context.
Agile supply chains run on principles, not on rules.