11 There is a need to abandon functional mm ea tkrei ct sh ea nc dh aandgoep?t Aa l bi ganl af nu cnecdt i os cnoarl emc aertdr i. c Hs ot owf odcou ws e or enwr ae rl ida bs yi lsi tt ye mw ht oi l emaal ni gangien bg at lhaen ec en tsi hr ee eotr tgraandi ez -aot if of sn. ’ s A focus on functional metrics throws the supply The balance sheet shortfalls and the subsequent board- room discussions will redefine the rules for the supply chain. These discussions will also educate the executive team. (One of the most significant gaps in supply chain management is the executive understanding of supply chain management). Wo c he ai l ne torcaenasnp coor nt at tai ionne rp rvioc leusma er ef e7l 1l 8%%l oi wn eS re py teeamr -boevre ra-n d year, don’t get lulled to sleep. Inflation is 8.3%, the high - est in four decades. Fs poer ncdoimn gp arne mi e sa,i nt hseaibsosvuee 2i s0n1o9tlreevveel sn. uWe . hCiol en sduemmearn d i s choi sotloi nr yg ifsr os mt i l lt hn eo toav egrohoeda tperde ds ti cattoe roof ft hd ee ml aas nt d2 ,0mmaokni nt hg s , tcroandtiitni ou ne sa lt od ebme aunnde vpel annanni dn gu tnepcrhendi iqcut aebs l ue .s e l e s s . D e m a n d Why Does This Matter? To fhveafraiial ub ri lei ttyo cmh aanngaegse tmh ea rdgi isnc su sasni do ni navtetnhteo rbioeas ridn ltehvee fl .a c e Tr ehcee nr ut lreess ae raer cchh aonf g1i1n0g .bHues ri ne easrsel es oa md eer sh:i g h l i g h t s f r o m • Demand. The order is not a good proxy for demand. Wo uittshi dhee-iignhat enndeudsde icshr ua pn tni eolnd, at ht ae rteo itsr aannsel aetde tmo af or ckue st changes and align the organization quickly. • Metrics.
Let’s Re-Write the Rules Last week, Nike reported first quarter Q1 2023 results. We niut he st hi necar ne ansoeudn 4c e%myeenatr, -tohveesr t- oy ce ka rmwa hr ki leet gt ruoms sb ml e da r. gRienv - decreased by 44.3%. Ii tnyv. eWn ht oi lrei eNs oi nr tchr eAams eedr ibc ya n4 4m%a r dk ue te st ao l es us pwpel ryec dh oa ui nb vl eo- lda itgi l- - it, they did not offset sales declines in China. Nike’s supply chain capabilities –verified by being a Sup - py el ya rCsh–aai nr es bt oe tAt de rmt ihr ae nAtwh ae ri rd pWe ei nr nger ro uf opr. tTwh oe sceo rnesseuc lut st i v e hi negr aeladr nu ipncgosmc ianl lgs .i sNs iukees’ sf or er pf uo trut irnegmf oalnl ouwf asc tt hu er i na ng nr oe up no rc te-- msuepnptlybycoFsotrsdlaosfttwheee$k1.M shortfall due to the increase in Ownhei l ed anye tl aetaerr,nLi ne gv si rf ee lpl ot rot e$ d1 7n3e tmr iel vl ieonnu, eo rg 4r o3wc tehn tosf a6 . 7 % , sr iheasr ge r, ef rwo my e$a 1r -9o3v emr i- lyl ieoanr , boyr 44 37 %c e. nS tese, at hyee pa ra tat ge or n. I?nCv oe mn t -o - po fa nh ii eg sh dg or onw’ t thha, vceo ma rpeavneine us ea rper os bt rl ue mg g. l Ci nogmwi ni tgh omf f aar gpienrsi o d and inventory. Tu nh ce etri tma ii nn tgyi—s uancsoeot tl il ni ngge. cWo en of amc ey aa nnde wp owt eanvtei aol f rme caersksei ot n lie ahead. In the face of future demand and rising infla - tion, now is not the time for companies to hold excess inventory. (On a side note, in qualitative interviews, choa mp ppeann iwe sh es nh ai nr ev et hn at ot rt iheesi ra rwe ot rhset hc ui gsht oe smt .eAr ss et ur vf fiec de wl e va er el s- hstooucskepiisleisn.)efficient, and most companies have the wrong
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