How do we know when the current Supply Chain processes need a review and change?
I have met several supply chain leaders who feel that their current processes have stabilized and should not be tinkered with. I think it comes from the adage ‘Don’t fix something if it ain’t broken’.
Who decides whether the current processes are broken or not? Are we delivering all the customer orders on time in full? Are all our listed products available on shelves when consumers walk in? Do we service all the sporadic unplanned demand?
If the answer to these questions is a resounding yes, then the supply chain is working fine. Of course, it can still be improved through faster demand fulfilment, fresher products and lower inventory in the system.
My guess is that most supply chain teams will answer a few of these questions in negative. Well, the supply chain performance can then be improved substantially to help us achieve more of the goal units. It is indeed broken in some parts which are invisible!
Let’s get away from complacency and work towards improving the supply chain performance on an ongoing basis, especially on the parameters which influence consumer experience and give us a Decisive Competitive Edge!