Have you implemented a supply chain solution that your team doesn’t understand?

I have seen it play out time and again. Companies implement a complicated supply chain optimisation solution. Team doesn’t understand the logic. They can’t develop intuition around it. Management insists on following the recommendations. Team executes the recommendations unwillingly. New behaviour doesn’t stick. Team reverts to earlier ways of working. New solution dies slowly and quietly.

Why does it happen?

No buy-in by the team, since they don’t understand the logic! They can’t even check the logic under different conditions.

It is absolutely critical that we explain the new logic in a simple manner that the team understands. For example, if the demand outlook gets brighter in a segment, do we send more goods on that route? Do the inventory norms go up to protect the higher flow rate? Do we produce more? Do we procure more input materials? If this chain of actions is not visible to the operating team, should we still expect compliance? A big ask in my opinion!

Many transformation projects fail, not because the logic was wrong, but because the team couldn’t understand it.

Keep it simple!