๐๐ฏ๐๐ซ๐๐จ๐ง๐๐ข๐๐๐ง๐๐. Overconfidence is a set of biases rooted in an unjustified certainty in the legitimacy of oneโs opinions.In a study done, demand planners were more than 10% more likely to be overconfident that non-demand planners. This phenomenon is consistent with other research that finds for groups of people whose opinions Read more…
One premise of economics is that when faced with choices of varying value, people will choose the greatest value. When they donโt, they are deemed irrational. The reality is that all of us make irrational decisions all the time, because decision-making is rarely clear-cut. Indeed, research over the last 40 Read more…
2 different quotes come to my mind when I read ‘Keep it simple’. The first is the quote by Steve Jobs who said, โSimple can be harder than complex: You have to work hard to get your thinking clean to make it simple. But it’s worth it in the end because Read more…
There are five requirements for any customisation supply chain strategy to succeed: 1. ๐๐ฎ๐ฌ๐ญ๐จ๐ฆ๐ข๐ฌ๐๐ญ๐ข๐จ๐ง โ the experience must be unique to each customer. 2. ๐ ๐ฅ๐๐ฑ๐ข๐๐ข๐ฅ๐ข๐ญ๐ฒ โ the personalised nature of the experience must adapt to the changing needs of the customer and the environment, including product configuration and flexible delivery Read more…
To compete with reliability, the bullwhip effect must be reduced or eliminated. This means addressing its root causes: – seasonal peaks, – promotions, – cyclical peaks and – order batching Influencing seasonal peaks or promotions, as in retail promotions, involves close inter department collaboration with marketing and sales.Predicting the timing of or mitigating the Read more…
For a certain period of planned time, it makes sense to choose a strategy and orient resources to it rather than trying to be excellent at everything.Companies can become stuck on a particular stage of lifecycle and prevent themselves from getting the low hanging (but exponentially greater) fruits of the Read more…
A low-cost strategy implies a supply chain strategy that cuts costs, and indeed, companies that follow this strategy typically favour rationalisation and synchronisation strategies over innovation and customisation. A focus strategy implies a supply chain strategy that helps to make the product or service more special in the eyes of Read more…
From the customerโs point of view, benefits result from increased efficiency, reliability, flexibility and innovation, and these are the underlying principles of SCM. These benefits manifest as the 4 main supply chain strategies for companies: 1. Rationalisation is excellence in managing the operating costs through SCM to achieve cost leadership Read more…
4 deep seated obstacles to change 1. ๐๐ฎ๐ถ๐น๐ถ๐ป๐ด ๐๐ผ ๐ฆ๐ฒ๐ ๐ฃ๐ฟ๐ผ๐ฝ๐ฒ๐ฟ ๐๐ ๐ฝ๐ฒ๐ฐ๐๐ฎ๐๐ถ๐ผ๐ป๐Managers may worry that if they set specific targets, their people canโt achieve, they too will look like failures. 2. ๐๐ฑ๐๐ฎ๐ฌ๐ข๐ง๐ ๐๐ฎ๐๐จ๐ซ๐๐ข๐ง๐๐ญ๐๐ฌ ๐๐ซ๐จ๐ฆ ๐ญ๐ก๐ ๐๐ฎ๐ซ๐ฌ๐ฎ๐ข๐ญ ๐จ๐ ๐๐ฏ๐๐ซ๐๐ฅ๐ฅ ๐๐จ๐๐ฅ๐ฌHaving to play nursemaid to so many activities saps executivesโ time and energy. Yet, Read more…
Many managers are reluctant to make valid demands from their team members. To avoid having to impose new requirements on subordinates, a manager may decide to take on the job himself. He reassures himself that his people are already overloaded or that they lack some qualification that he possesses.At the Read more…