Last night I re-watched Zero Dark Thirty which is a great Hollywood rendition of the search for and ultimate killing of Osama Bin Laden. No politics here and I just want to reflect on what the learnings are for us, especially in that final scene where we get to see execution with amazing precision.
There is a lot to learn here for supply chain professionals and it all revolves around the word precision. If there was one word which defined that mission, it is that word, precision. I underline and bold it as it is a word to not forget. Precision is an outcome of two other key words: planning and practice. This could become a new term in supply chain, or perhaps a new formula: Prc = Pl*Prct. Precision = planning multiplied by practice. Let’s look into this:
- Planning: If the Pandemic taught us nothing else it taught us the importance of scenario planning. This means you look at all the different scenarios which could impact your business and supply chain, you identify those things which are “early warning indicators” to let you know if the scenario is happening or not, you identify what the severity of the issue will be if it occurs, then you plan and execute a mitigation strategy if needed. This is similar to a FMEA except you do this for external events.
- Note: McKinsey and Company reports 37% of supply chains implemented some element of supply chain scenario planning and these were 2.0x more likely to not have supply chain disruptions
- Practice: This is an area business tends to lack and as the formula would imply, if your planning is 100 but you practice at 0 then your precision will be 0. It is also something the military does extremely will. Think of the movie I am referencing where they have complete mock ups of where they are going, they knew when they went in the house, even at night, exactly where they were and they knew the name of every occupant. They knew this because they practiced, and practiced and practiced. How many companies do you know have great scenario plans but they just sit on a shelf somewhere and no one has looked at them, let a lone practiced them.
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