During the recent webinar, Inventory Fitness – Governance, Targets, and Segmentation, we took audience questions and answered them.
Here are some issues that people in industry face and are interested in finding a solution to!
Question 10 of 14
Question:
In highly regulated environments; balancing inventory can be a challenge when we’re caught between supply chain, maintenance, engineering, and differing mandates.
What is the best way to align, and how does the RACI play out from a cost-savings versus reliability perspective?
Answer:
Oh, tough question because, in this case, the math can say one thing, reality can say something else, and common sense is yet another thing, and then you find out there are other constraints. So, anytime we look at inventory, it’s not just math. Don’t go for dogma. Math is going to get us one thing. Make sure your audiences are considered. Who will be impacted by this? It could be regulations, capacities, limitations, permits, transports, border crossings.
Some of those are cost and safeties, other are trickier. So, a RACI is essential that gets everybody in a room, and you think through what these decisions should be ahead of time. So having a RACI role; responsible, accountable, consultant, inform, look that one up. If you don’t know it. Making sure you have the right people in the room when the decision parameters are agreed, then the decisions can be made more easily. And don’t just stick with math. Math might be mathematically perfect and correct, but reality could be telling you a different story.
Remember, we’d be happy to chat with you about any of this in more detail.
And if you’re interested, check out our schedule for upcoming business process improvement courses that we offer throughout the year to help you achieve business excellence.