People – not systems – make supply chains successful

The supply chain world today is increasingly driven by data and systems. This makes sense as the goal of every supply chain is to find the lowest operating cost structure. And systems allow us to track and measure many more cost variables than we ever could in the past.

But merely accumulating data doesn’t necessarily lead to improvement. Someone has to validate and interpret the data, as not all data is reliable. So no matter how sophisticated our systems may become, there will always be room for intelligent people to play a role in supply chain success. In fact, one of the curses of a complex supply chain is that it is very brittle. Small changes cause disproportionate disruptions. Changing a cost or a ship point becomes an Olympic event. Rerouting shipments requires extensive manual interventions and levels of approvals. Shifting customer demands frequently require manual overrides.

Ever try to change an online order with Amazon? Better be quick.

Some of these disruptions are unavoidable. And only people fluent in supply chain tactics and systems can make these changes without tearing up the system or reducing its effectiveness. We have invested a great deal in our systems. I hope we will be willing to invest a similar amount of time and money is developing the talented people who will allow our systems to save money while at the same time remaining loose and flexible enough to respond to the changes required to truly serve the business needs.

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