Supply Chain Illustrated

Stop Managing Chaos
Start Driving Change

There must be a better way

I asked a group of supply chain purchasing and planning professionals a simple question. I asked them how they decide just when to place an order and just how much.

Chasing the same problems for decades

Reduce Inventory, they said. And they’re still saying it. We’ve been working on the same things for decades. How is it possible that we are chasing the right things, but not achieving the goal?

A CFO, a CEO and a COO walk into a bar.

If you have product available, then sales will result. You will only maintain that level of sales if you have the capability to produce to the customer demand. And if you produce only what the customer is buying, then you will have the money to pay bills, including worker salary.

Problem Solving

The Problem-Solving Dilemma

When trying to implement a culture change or a lifestyle change or any kind of a change, you need to be intentional.

Safety Stock – a misleading solution

Typically, your family uses three eggs per day, so you set a safety stock level of six (two days worth). This means you never intend to have less than six eggs. That way, you should not have to rush to the grocery store just because of eggs.

Measuring Success – a Future Perspective

What will be the company measures in the future? That remains to be seen. But here’s a couple ideas, that I think (hope) will become mainstream in the future.

Julie and Matt go to a Workshop. Eyes Wide Open.

Today, we find Julie, Matt and two other members of their team attending a Demand Driven Planner workshop. There is a certification possible, but right now Julie and Matt just want to evaluate if this methodology is as promising as it seems. We catch up with them during a break in the class.

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