Do More Without More
July 02, 2012
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.
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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.
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