Our vendors have 70% Due date performance (On time- In full).
“There is a 90% chance of me procuring the raw material on time, if my vendors are reliable. Isn’t that great?”, said the Procurement Head.
“There is a 90% chance of me producing the item on time, if I have the raw materials. Isn’t that great?”, said the Production Head.
“There is a 90% chance of me shipping the item on time, if I get the item on time from production. Isn’t that great?”, said the Supply chain Head.
“There is a 90% chance of me selling the item, if I get the item I need on time. Isn’t that great?”, said the Sales Head.
The CEO is wondering how despite such wonderful numbers, why the customer experience is a low 50% ?
Individually, all internal departments scored 90%, why was the customer experience so low?
Even if we assume our vendors were 100% reliable, still our performance would be abysmal 65%.
What do we measure ourselves against?
An internal ‘forecasted’ number OR the reality that the market is telling us?
Imagine now, a system where instead of working for some predicted numbers, companies make themselves agile enough to quickly identify what the market is telling them and then respond to it.
Moving from a push based system to a pull based system.
Moving from good to great.