As we get ready to start what is sure to be an outstanding 2012, one of the keys to sustained success will be getting back to and focusing on the basics. One of the basics is clarity and use of language to highlight what is really important. For example, there are a lot of words and phrases about demand driving supply chains …
Demand Driven? Demand Driven Value Net? Customer Driven Value Network?
The jargon is constantly changing with new theories and practices unveiled yearly at conferences throughout the country. We understand that these organizations and bodies of expertise are profit reliant and must continually refresh and repackage their message to remain relevant.
But what are they really talking about?
Matching supply and demand – in a way where you and your customers and your vendors mutually benefit (improving the value chain). While easy to say, it’s not necessarily easy to execute with accuracy and discipline, thus the over-complication of supply chain terminology.
Listen to the conversations you’re having with your colleagues. Are you discussing the true business problem? Or skirting the issue by giving each other the run around trying to impress with multi-syllabic words and semantics? If it’s the latter, try looking at what’s at the root of these lengthy discussions.
Forecast error is a constant theme through these long winded phrases. Forecast more accurately and you’ll have an easier time with the rest of your supply chain process. Whether you’re referring to Gartner research circa 1999 or 2009, you’ll be told to improve forecast accuracy for measurably better supply chain performance.
Not only will 25% less error simplify your conversations, it’s also the shortest route to the shortest word your company cares about. Profit.
So for the record, we are forecasting a great 2012. Happy New Year!