Getting It Right: How to Align Supply Chain Projects with Real Operational Needs

As a supply chain consultant, I've seen my fair share of performance improvement initiatives that just don’t hit the mark. I’ve noticed that organizations usually fall into two camps when it comes to managing their supply chains. Let’s break down these two groups and why their approaches often lead to failure.

Group 1: The Short-Term Thinkers

First up, we have the short-term focused organizations. These companies are often scrambling to hit immediate targets, which leads to some pretty unhealthy and downright risky practices. I’ve seen companies go to great lengths to boost their numbers at the end of a quarter, and the methods they use can be eye-opening (and not in a good way).

For example, in one organization I worked with, they were so desperate to hit their sales targets that they kept their shipping operations running until well past midnight on the last day of the quarter. Any orders that were shipped after midnight? They backdated them to the previous day so the revenue would count for that quarter. Shady? Absolutely. But that wasn’t the worst of it.

At another company, the QC team had tested a batch of product that failed to meet standards. You’d think the logical next step would be to hold back that batch, right? Not here. It was the end of the quarter, and the pressure to show positive numbers was immense. Management decided to ship the failed batch anyway. Short-term win for revenue, sure, but at what cost? Damaged reputation, potential recalls, and eroded trust with customers.

These tactics might give a temporary boost to the bottom line, but let’s be real—they’re not sustainable. Over time, these quick fixes lead to bigger problems like damaged customer relationships, increased costs, and a toxic company culture where bad practices become the norm.

Group 2: The Long-Term Planners

On the flip side, we have the long-term focused organizations. At first glance, this seems like the better, more strategic approach. And in theory, it is. These companies aim to improve their overall capabilities rather than just chasing quarterly numbers. However, they often end up with initiatives that go nowhere. Why? Because they don’t always prioritize the right projects or understand the real issues at hand.

One common problem is that decisions are often made far away from where the real action is happening—far removed from the everyday grind of operations. I remember working with one company that had invested heavily in a supply chain planning software. It wasn’t the most user-friendly tool, but it got the job done, and they had already poured a ton of time and money into its implementation.

Then, a new Director came on board and decided that the software just wasn’t cutting it. The knee-jerk reaction? Let’s find a better software solution! But here’s the kicker: the real issue wasn’t the software at all. Key planning data, like bills of materials, were only about 60% accurate. Plus, their QC testing and QA release lead times were all over the place—ranging from 90 to 300 days.

The reality was, they needed to focus on getting their data in order and understanding why there was such a huge range in lead times. But instead, they pushed forward with picking a shiny new software. And guess what? After they made their choice, the software provider took one look at their situation and told them flat out—they weren’t ready for this solution.

So, What’s the Takeaway?

Both of these groups—short-term thinkers and long-term planners—have the right intentions but often miss the mark because they’re not addressing the real problems. Short-term thinkers focus on quick wins that are actually destructive in the long run, while long-term planners can end up wasting time and resources on the wrong initiatives because they’re out of touch with what’s really happening on the ground.

The key to successful supply chain performance improvement? It’s all about balance. Prioritize projects based on actual operational needs, stay close to what’s really happening in the trenches, and don’t lose sight of the bigger picture. Sustainable improvements come from understanding the root causes, investing in the right capabilities, and making sure every action taken is grounded in reality—not just what looks good on paper.

Ready to move forward with a smarter, more balanced approach? Let’s make it happen!