Tag Archives: root cause

Analysis must be action-able

Managing a supply chain successfully requires gathering data to help monitor the performance of the various links in the overall chain. Much of this reporting is routine, such as sku performance, shipping accuracy, on-time delivery and key receiving accuracy. These reports are useful for monitoring, but they often don’t tell us how to improve performance. For this we need more analysis.

In my view all analysis must be designed to support change, that is, it must be action-able in a way that adds value to the process it evaluates. We could also say that all proper analysis always seeks to answer a question: how can I improve this process? Where are the bottlenecks? What players need to know about this so that it can be resolved? There is no need – and rarely time – for analysis that simply restates what we already know.

Out of stock reporting is a good example. That a product is out of stock is not helpful. We need to know why a product ran out. Was it unexpected sales? Incorrect inventory counts? Short-shipments? We can only correct a problem if we know the root cause.

So when you analyzing data, remember that the goal is to envision how to improve a process, and not merely to impress others with elaborate spreadsheets or fancy presentations. Provide value by showing a better way to manage the business.

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