Inventory Fitness: FAQ – Question 13 of 14

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 13 of 14

Question:
I know you have used the beer game in the webinar and in Oliver Wight public courses to demonstrate the results of better inventory governance.
What’s the role of systems apart from processes and policies?

 

 

 

Answer:

Oh, interesting.

Appreciate the question. And, really, it’s a matter of how the system supports the policy and process. So, no system alone is going to provide results unless the people and the behaviors are aligned, and the system provides that support. Conversely, the system’s capabilities can affect the way the people and processes work. It’s important to consider all three, and really people process considerations are typically needed before considering systems. Kai, I think you’ve got a little more on this.

I think the most important thing is to remember that the system that you’re using is a model of your business. And that the data in it has to be representative of how your business actually functions.

And so, if the data in the system is incorrect, then the system will not be supportive or cannot support your people in your processes.

If the data is correct, then it will be very supportive and really enhance what you get out of your people and the value you get from your processes.

In any case, the core principle is that all of those things be need to be aligned. If you have a system with great data and no policy and procedure or good practice, you’re going to be in trouble. If you have a system with great data in it, but people aren’t trained on how to use it, again, you’re going to get bad results. And if you have a system that has terrible data, once again, it’s going to be very difficult to get good results. And so, I think the key piece is that all three elements have to work together, and they’re all interdependent and supportive of each other.

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. 

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