Supply Chain improvements should move us closer to the goal.

Many supply chain improvement projects aim at improving a specific leg of the supply chain on a specific metric. Such short-term initiatives, aiming at local optimization, often take us away from the direction of solution required for achieving the long-term goal. For example, batching of freight consignments may save on the logistics cost in that leg, but may result in compromising customer service levels and cost of obsolescence.

If we are clear on the goal of the organisation and have chosen the overall direction of solution, it is important to ensure that each initiative follows this direction and takes us closer to the goal.