You are only as good as your data

Supply chain and inventory management decisions can be complicated, and the results of a bad decision can be very expensive. We rely on data in many forms to help us make good decisions. But how often do we question the reliability of this data, and how often is it updated? Good data that is outdated is not much better than bad data.

It takes time to validate data, but if you are serious about your success, you owe it to yourself to take the time required to check your data’s accuracy. You don’t want to find out after the fact that your made your decision based on bad information. Go back to the team that compiled the data and ask them to explain how they got it. More importantly, ask them about any assumptions they made when interpreting the data.

As an example, I recently discovered that a report I was using was no longer supported by our IT teams. No one had validated the data for several months. Shame on me for not checking. The result was that I had been making recommendations that were completely misleading. So going forward I now have a policy that I won’t use a report that has not been validated within the last 30 days.

Get in the habit of questioning the data that everyone else is assuming is foolproof.

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Comments

  • Leo Brinsfield  On December 17, 2011 at 17:17

    My family every time say that I am wasting my time here at web, however I know I am getting know-how everyday by reading such good articles or reviews.

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