Optimization Software Claims to Tell You How to Fish

Does optimization matter? Many have read The Goal made changes to their business processes and subsequently realized great improvement to their bottom lines. This indicates that most of the business improvement in supply chain management initiatives are in rethinking and reengineering the business processes and software is immaterial (or at least secondary). Which is it? Process or software? Software suppliers make very little mention of business process. Management consultants downplay the role of technology in business improvement. Who do you believe?

Originally Published in ToC Review Magazine

There are three basic types of supply chain structures with unique properties that must be considered when synchronizing your channel.  However, the problems in the different types of supply chains share common root causes.  Once resolved, the impact is dramatic.

A case study of an implementation is at the end of the presentation.

In January 2001, Computerworld magazine reported on a study that concluded that few companies achieved any return on their supply chain project investment. More than 850 companies were surveyed, including those that had highly publicized supply chain failures. One of the authors of the study, Vinod Singhal, said, "Much of the evidence [for payoff] is anecdotal." The article further quotes Robert Austin of Harvard University, saying, "Only a few lucky companies can prove that they achieved any real payoff from their SCM (supply chain management) efforts."

Why are so few implementations successful? This article outlines key factors to consider in order to deliver bottom line results in your supply chain initiative.

Originally Published in ToC Review Magazine