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RIGHTCHAIN INSIGHTS
Dr. Frazelle's periodic posts on supply chain optimization, technology, and operations.


In Search of the Perfect Order
There is no universal standard for measuring logistics quality, RightChain introduces the Perfect Order as the most comprehensive metric. A perfect order requires every step, from order entry and inventory availability to delivery, billing, and documentation to be completed without error. It demonstrates how small failures across individual activities compound, significantly impacting customer satisfaction and overall supply chain performance.


Is Inventory a Means or an End?
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.
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