Sometimes I wonder why we continue to do what we do?

Flow Diagram of Supply Chain Driven by Forecasts


The old saw applies:


“Insanity is doing the same things over and over, but expecting a different result.”


We know our forecasts are always wrong, to some degree or other.


We know that our resources get misallocated. We know that we are constantly using precious resources to make, ship, and store things that will not be needed—not now, certainly; and maybe not ever. We know that we must regularly rework our plans and break our schedules, simply because actual demand has revealed just how wrong our plans and schedules really are.


Nevertheless, we continue doing these same things—over and over again.


And, we settle for profits that are far below the potential for our operations.


We could be doing something different

Consider what happens when we stop doing what everyone else is doing.


Look at this simple accompanying figure.

Flow Diagram of Demand-Driven Supply Chain


All we did to get to this result was the “lean” thing. We eliminated the waste.


We eliminated the time, energy, money, and capacities spent making, shipping, and storing the stuff our customers were not seeking.


And, what happens?


The obvious thing is that we make more money.


But, that’s not all.


Eliminating the waste reveals new capacities—20 percent, 30 percent, 40 percent or more.


The unveiled new capacities make us more flexiblemore able to respond to changes in the marketplace, and more able to produce what our customers are really demanding.


In other words, it helps us do more with less.


Cash flow is improved. Morale goes up. Employees are more happy and feel more in control.


Firefighting dramatically declines.


On-time delivery goes up—typically, way up.


Isn’t this the way you’d like your supply chain to operate?


At its core, this is what becoming truly demand driven is all about.


Personally, I think you should look into it more. You can find a plethora of information about it on the Demand Driven Institute Website.


Do it today. Why would you want to wait?


Move from complex to simple. Move toward simplicity and sanity, by stopping the merry-go-round of practices that do not lead to improvement.


What do you think?


We can help. Leave us a message below, or contact us directly, if you prefer.



Follow us on Twitter: @RKLeSolutions and @RDCushing
LIKE us on Facebook: RKL eSolutions and GeeWhiz2ROI