Inventory Is Evil!™ - The Classic Inventory Floating Over Problems

This is the classic image of a boat representing inventory. The higher the water level, more inventory. The rocks represent problems within the business. As you lower the water level/inventory the problems are exposed.

Remember, Inventory Is Evil!™ - Because it delays and hides problem resolution.

The three common barriers when planing on inventory velocity improvements.

  1. Fear of the unknown. Making the issues bigger than actually. Nothing is ever as bad as the initial fear.

  2. Lack of total leadership engagement. Inventory velocity improvements are a culture shift requiring total team involvement, not just supply chain.

  3. Where to start? It’s a big elephant. Just one or tow small areas. Get early successes, build momentum and team confidence.

Inventory Floating over Problems

What are your three concerns that are keeping you from starting?

  1. ______________________________________________?

  2. ______________________________________________?

  3. ______________________________________________?

Three Powerful Elements Small and Medium Sized Companies can do to improve their Supply Chain Management - Art Koch's Profit Chain™

During a thought leadership meeting I was asked what can small and medium sized companies do to improve their Supply Chain Management.

  1. Increase Professionalism

  2. Have meaningful Key Performance Indices - KPI’s

  3. Improve Inventory Velocity

Art Koch's Profit Chain™ - The Dream Team

Currently I’m working with a client to implement the Demand Planning, Inventory Optimization and Replenishment Planning solution, SO99+ from ToolsGroup.

After several months of hard work by the core team we successfully completed a significant milestone; Conference Room Pilot-CRP. I could not be prouder of a group of people

Looking back we could have not reached this point with out team work. But what’s team work? With this team I found three key elements they managed through.

  1. They respect one another. They might not alway agree with one another. However, they listened, tired to not make each other wrong and delivered joint solutions

  2. Worked to each others strengths and weaknesses.

  3. Individual Leadership. Several individuals stepped up to lead without being asked.

This past week someone started calling them, The Dream Team.

The Dream Team

The Dream Team

When I take a look at the core team we had members from by clients IT and Supply Chain Management and the solution providers implementation and IT teams. Additionally, team members are from eight different countries and four continents. Just think about this diversity!

It didn’t start perfect and it took several months for The Dream Team to “jell”. During early meetings people sat as departments, (the silo effect), and there was almost a “us” vs. “them” atmosphere.

Challenge was to make sure all team members felt included, without making a big deal of diversity.

At the first opportunity we arranged a team building activity, group dinner and the Chicago Lockout. At dinner and walking to the Lockout Rooms, individuals stayed with their respected departments. However, once at the lockout rooms, we made certain they were split into diverse groups. Afterward, people literally were walking arm and arm in diverse group. Success, we have the making of a team!

Team Building Events held in conjunction with significant milestones.

  • Lockout Room - required team problem solving

  • Bowling Night - required laughter and encouragement

  • Dinner and open bar celebration - required to mix and just enjoy the fellow team members.

As subtle as this is, it’s about being certain the environment is safe for team members to feel included and non threatening. Once the stage is set, they will deliver unexpected positive results.

If you let them they will become; The Solution!