Consistent Over-Delivery ? A toll on TRUST!

Consistent Over-Delivery ? A toll on TRUST!

They say "To prove your worth in the ecosystem, under-promise & over-deliver"

But What happens to Organization & Supply KPIs and the Supply team's capabilities when sales is constantly "Over Delivering" vs plan?

Who gets blamed for: ”Sure, we could have sold even a lot more, if only there had been better availability?”

Let's get straight to SUPPLY point of view,

What Supply feels: (since it's all about the availability in focus) Clearly the Lack of trust. Resulting own assumption for numbers and try to build additional stocks and logistics capabilities to be ready for anything (surprises!!).

Even if not for the whole portfolio but with some SKU's (gut feeling basis experience - prediction from experience rather logic)

Well, that's sounds good, right? Supply would be better ready for the surprises? Maybe, but likely it will generate wastage for a lot of resources and still miss something very important.

Outcome: Over Delivery Encouragement clearly decreases the incentive for proactive cross-functional cooperation.

If you are treated as a ”hero” for over delivering (again i.e. going over what has been aligned together) you will create a lot more ”unexpected” fires that somebody else must deal with later.

Why?

Because to maximize your chances to overdeliver, i.e., to be the "hero", you must keep some of the cards to yourself. If you would be transparent, others could also see that delivering 100 consistently is realistic, even though challenging.

That’s all.

Not a biggie, if you don't care about stakeholders. Even with good Results, it will turn into something unavoidable (in background) within the organization culture.

Rather, it should be realistic, at the same time challenging targets, to align the expectations to achieve them and then encourage to deliver what you promise to deliver.

IBP would be much easier with transparent approach.


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Saket Srivastava

Engagement Manager | I help companies realise supply chain planning potential | CSCP | Supply Chain - 30u30 |

1 年

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回复
Pratiksha Bhosale

Co-Founder | Head- Human Resources & Business Development at KriviSoft Tech LLP

2 年

Absolutely! I still remember Roquette's CEO describing India as an overly optimistic people' s country which often makes us over commit :)

Wamika S.

PriceFx QA Senior Consultant at Wipro | Ex-Deloitte | Salesforce Certified Administrator & AI Associate

2 年

Quite informative and useful! Not just in supply chain vertical but also in diverse aspects.

Hrushikesh Kulkarni

Planning & Digital Transformation- Tata Consumer, Ex Britannia, Ex Godrej consumer, Ex General Mills

2 年

Indeed. And so is the consistent under delivery a source of waste. It should always swing between under and over delivery albeit within a tolerance limit.

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