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How much should we push the envelope in Supply Chain?
Most teams are busy with projects to improve their supply chain in terms of pushing the envelope for better customer service. The question is… how much should we push the envelope?
Better customer service is sustainable only if comes with improved capabilities at the back end. If the capabilities remain at the same level, such improvement projects would likely fail to deliver the benefits promised.
Many companies have the Process of Ongoing Improvement (POOGI) to improve the relevant and critical supply chain capabilities on a continuous basis. In such cases, envelope can be pushed consistently to match the speed of capability improvement.
If we push it faster, we run the risk of tearing the envelope! I have seen it happen with a few teams where the result is just chaos and high levels of stress for the team members.