How to Make Good Supply Chain Decisions

January 15, 2009 from Supply Chain Digest – “…The consultants at McKinsey recently conducted research to look at decision-making processes – and results – from an overall business perspective, but the insights provided are spot on for supply chain decision-making as well…”

180 View (written by Lawrence Young) – Investing in supply chain software and business process reengineering may be just the solution for wholesale distributors, importers and manufacturers to eliminate waste in one or more operational areas of their company.

But all too often we’ve seen companies invest heavily in new technology and related professional services without achieving the anticipated Return on Investment. From our experience, this is often due to the decision process that was used to justify the investment, which is exactly what this article addresses: ‘the failure of many companies to well consider supply chain and operations input often leads to decisions that ultimately do not deliver expected results’.

Our many years of experience selecting and deploying technology validate the article’s five suggestions to help companies make good supply chain decisions. Clear accountability, learning from the past, keeping the big picture in clear focus, transparency, and risk management will collectively go a long way to ensuring that avoidable mistakes are not made.

And while ‘no company or supply chain organization ever bats 1000’, we agree wholeheartedly with the article’s conclusion that ‘adopting the principles articulated can ensure your supply chain is consistently at the top of the batting average leaders’