Supply Chain Optimization

How to Save Your Supply Chain Project from Failure

The summary of this brilliantly written article in SupplyChain Brain includes 

  • Joe Peppard’s key points about causes of failure:
    • The illusion of control by upper management
    • Conflicts of interest
    • IT amnesia
    • Managing expenses —not assets
  • I add:
    • Taking the safe option (In the old days, it was “you can’t be fired for buying IBM”)
    • Overlooking the small, often specialized vendor (Big vendors don’t know everything)
    • Forgetting sunk costs are well sunk (We are building something in-house, but it doesn’t work very well)
    • Slow failure (Quitters sometimes win)
    • Lack of intent/commitments (We forgot to remind management how much we are saving)
    • Missing measures (You need to keep improving— the alternative is not pretty)
You can see the whole article here.