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Are your internal targets ambitious enough?
I have seen many Supply Chain teams setting internal targets which are ‘achievable’. This implies that the teams know how to achieve them, only the execution needs tightening. The initiatives coming out of these targets are mostly incremental and execution focused.
If we need breakthrough improvements in various supply chain metrics like customer service (fill rate and lead time), we must set highly ambitious internal targets, which look impossible to achieve. It forces the team to challenge the status quo and the underlying assumptions, work out the proper direction of solution and list the initiatives to move in that direction.
Unless we set ‘impossible’ internal targets, improvements will only be incremental. The journey towards these ‘impossible’ targets is what creates breakthroughs.
Shoot for the stars…