October 16, 2008

These 6 variables are well. But the most important variable is missing: The people, who makes decisions in the supply chain, which has restrictions, paradigms, etc. that determine if the other 6 variables are effective or not.

The decisions flow depends on the people, only on the people. We are the element of the supply chain that decides what actions to take in every event. That is why the decisions flow is the more subtle flow of all the four flows. While it depends on people, rhat means it depends on knowledge, emotions, behaviors, empowerment, paradigms, skills, weariness, assumptions, etc.

All these are difficult to measure and to improve. The efficiency of the materials, information and money flow is directly related to the efficiency of the decisions flow.

But as in the iceberg, this is hidden beneth the water so, to see it we must dive, analyze it, diagnose it and improve it continuously.

We can also prepare a map of the materials, Information and money flows, it is necessary to design a map of the decisions flow that goes with the other flows.

A detailed map of the decision systems of the chain is the first step to improve all of the flows. There is necessary to describe clearly Who take the decisions (Responsibles), When they must take the decisions (Time) and the criteria to take it (Parameters).

Manuel Acero
Focus Chain
Bogota, Columbia