Do More Without More

This is an excerpt of the original article. It was written for the July-August 2012 edition of Supply Chain Management Review. The full article is available to current subscribers.

July-August 2012

Managers sometimes don’t understand the importance of the information provided by supply chain metrics—or even the need for metrics in the first place. But according to researchers from Penn State, having timely and accurate metrics in place leads directly to superior business performance. They make a strong case for why supply chain metrics really do matter.

Browse this issue archive.

Already a subscriber? Access full edition now.

Need Help?

Contact customer service

847-559-7581   More options

Not a subscriber? Start your magazine subscription.

The economy is not quite strong enough to cause us to break into a rousing chorus of “Happy Days Are Here Again,” but it does appear that primary economic indicators are trending slowly upward. The pace of that trend, however, is causing difficulties for many supply chain management professionals. Companies are reluctant to invest until sustained growth is more clearly apparent. Meanwhile, we are being asked to respond to the growth, but without additional staff and/or capabilities. In effect, we are being asked to “do more without more” until sustained growth is assured.

According to The New York Times, “American corporations… are sitting on record amounts of cash but insist that growth opportunities are hard to find. The result is that at a time when the nation is looking for ways to battle unemployment, big companies are creating fewer jobs, and critics say they are neglecting to lay the foundation for future growth by expanding into new businesses or building new plants.” A research article published by McKinsey explored the reasons for the executive bias toward conservatism, concluding that “these executives also display a remarkable degree of loss aversion—they weigh potential losses significantly more than equivalent gains. The clear implication is that even amid market volatility and uncertainty, managers are right now probably foregoing worthy opportunities, many of which are in-house.”

Supply chain managers are therefore being tasked to support the company’s growth with existing resources, facilities, and equipment. How will we do that? Work harder? Productivity rates have been steadily increasing for the last two decades. We’ve all been working longer hours, and doing more with less. Some of us have begun to work smarter—and that’s where the answers lie for all of us. Lean methods, for example, help us reduce the waste and increase the value to the customer.

This complete article is available to subscribers only. Click on Log In Now at the top of this article for full access. Or, Start your PLUS+ subscription for instant access.

Not ready to subscribe, but need this article?
Buy the complete article now. Only $20.00. Instant PDF Download.
Access the complete issue of Supply Chain Management Review magazine featuring
this article including every word, chart and table exactly as it appeared in the magazine.

SC
MR