Start With the Right Metrics Organizations invest heavily in technology, automation, infrastructure, and transformation initiatives in the pursuit of world-class supply chain performance. But what if one of the most powerful levers for improvement is also one of the simplest? Dr. Ed Frazelle poses an important question: What is the fastest, least expensive, and simplest way to get a supply chain up to world-class standards? His answer: put a world-class set of metrics in plac

Reducing inventory and lowering unit costs can create conflicting decisions, since global sourcing and volume discounts often increase inventory. Instead of optimizing individual metrics, supply chain leaders should focus on broader outcomes such as ROIC, perfect order performance, and total supply chain cost. Inventory should be treated as a strategic means to achieve business objectives—not as an end in itself.

Dr. Frazelle explains how logistics serves as a critical bridge between organizations, customers, and suppliers. Building that bridge effectively requires the coordinated integration of people, processes, software, and hardware. Strong logistics capabilities ensure these elements work together seamlessly, enabling reliable flows of products and information while strengthening connections across the entire supply chain.