analogy. Airline pilots train in simulators to better respond to critical events. When an event happens, even if it is not the event that they trained for in the simulator, the presence of training and simulation helps the pilot to react better. The outcome is safer. They better know the limitations of the aircraft. The building of an agile organization is similar. If individuals within functions know the limitations of the organization, along with the excesses and capabilities, the functions within the supply chain can better align to improve results and weather issues. • Building with the Goal in Mind. One of the largest gaps is leadership. To help solve the problem, focus on the building of horizontal processes, ensure metrics alignment and clarity of strategy/ vision. Push to understand the potential of the system. Test to understand the impact of trade-offs. • Changing the Mindset. Remove bias and latency from data. Attempt to move data cross- functionally with as little latency and bias as possible. Measure improvement through processes like Forecast Value-add Analysis and drive continuous improvement programs to reduce bias. When bias exists, model the range of outcomes, understanding the limitations and opportunities. Tight integration of data does not drive better alignment; instead, it is about the understanding of the probability of events and the impact of an event on a potential outcome. Drive the understanding of cause and effect in cross-functional processes, supply chain plan reviews and the evaluation of new product launches. Conclusion Organizational alignment matters. There are three techniques that can be adopted by organizations today to improve alignment and combat supply and demand volatility. All three of these important processes are maturing, but each improves alignment between functions.
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Supply Chain Insights LLC
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