Email
sinha.rk.dr@gmail.com
Reliability of Supply Chains is often affected by seemingly innocuous hygiene factors.
I have seen quite a few supply chain teams struggling with reliability improvement. While they have redesigned their entire supply chain for improved reliability and the backend process execution also seems fine, they get frequent surprises in servicing their customer orders. An overall system and process diagnostics fails to identify the root cause.
More granular level diagnosis reveals that their inventory records are prone to error. While the supply chain planning and execution show consistently high performance, they find that a particular item is missing at the time of dispatching the customer order. Why is that?
Inventory Record Accuracy (IRA) is a hygiene metric, which often gets ignored in regular tracking and monitoring. We must measure it regularly and cover all the items and all the locations over a period.
If IRA is poor, we can’t expect high supply chain reliability. Agile companies must operate at close to 100% IRA.