Knowing what you have and where it is.
WHY IT MATTERS
Supply chain decisions depend on accurate information, and most problems are information failures.
WHAT TO KNOW AT ANY TIME
What stock you hold, by item and location What is on order and when it is due What is committed to customers What is in transit
WHY COMMITTED STOCK MATTERS
Stock physically present but promised is not available.
WHAT TO ESTABLISH
Records that distinguish physical stock from available stock.
WHAT MAKES RECORDS UNRELIABLE
Movements not recorded Recording delayed Stock taken without documentation Counts not reconciled
WHY DELAY MATTERS
Records that lag reality produce wrong decisions.
WHAT TO ESTABLISH
That movements are recorded as they happen.
WHAT TO RECONCILE
Records against physical count, regularly.
WHAT TO DO ABOUT DIFFERENCES
Investigate rather than adjusting.
WHY
Adjusting without explanation conceals the cause, which continues.
WHAT INFORMATION SUPPLIERS NEED
Forecasts Orders Changes
WHAT INFORMATION CUSTOMERS NEED
Availability Delivery dates Notice of problems
WHAT TO ESTABLISH
That information flows both ways, promptly.
WHAT SYSTEMS PROVIDE
Visibility, and consistency.
WHAT TO ESTABLISH BEFORE IMPLEMENTING ANY
That the process works and the data is accurate.
WHY
A system built on unreliable data produces unreliable output faster.
WHAT TO MEASURE
Record accuracy against physical count.
WHY
It determines whether any of the information can be relied upon.
