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How frequently do you improve your Supply Chain?
What really differentiates excellent supply chains from others is the direction and frequency of improvement. The direction of improvements comes from the consumer requirements, design of the supply chain, performance measures and the current level of performance.
The frequency of improvement, however, varies widely across companies. Some teams look at their performance dashboard once a month (before the Management Review meeting!), whereas others are more responsive and look for exceptions every day.
A good supply chain design starts with consumer requirements and the Undesirable Effects (UDEs) experienced by the team. These lead to the root causes through a logical analysis and actions to remove the root causes.
However, some UDEs do surface from time to time. These call for immediate improvement actions. We may need to tweak certain design parameters, improve flexibility and responsiveness of the constituent elements.
How soon we spot the UDEs and take improvement actions lies at the heart of supply chain excellence!