Issue link: https://iconnect007.uberflip.com/i/1521713
14 SMT007 MAGAZINE I JUNE 2024 But for many, the question has been, "Can I get by without changing anything?" is is a scarcity model way of thinking. If you rec- ognize too many of the following behaviors in your organization, you might be operating from a scarcity model of thinking, in survival mode: • Consistently missing the numbers • Answers are inconsistent without explanation • We live one purchase order at a time • Significant dependency on lead time with a difficult time keeping up • From the supplier perspective, many orders are drop in • We struggle to depend upon the intended supply chain • Growing dependency on alternate channels • Too many ongoing surprises • Shi from just-in-time to just-in-case mindset Unfortunately, these behaviors can be a sig- nificant barrier to growing your supplier rela- tionships. • Transparency disappears. As a customer, we find an alternate component or alter- nate supplier and move on to the next crisis. As a supplier, in the absence of transparency, it looks like forecasts are being missed. At best, parts we were screaming for today suddenly go quiet because we found them elsewhere and didn't tell anyone, and suppliers start to question what the driving behaviors are. Is the demand real? • e need to work "PO to PO." A surpris- ing number of companies do this. While it technically provides more ability to change supply chains if a lower cost option comes along and certainly is aimed at reducing component liability, it has challenges: › e problem in an environment of stretching lead times is that we can't keep up with the real lead times. › Far too many conversations with suppliers are about when you should have placed the order vs. solving the problems. › Debates about whether you placed orders inside or outside of lead time are not constructive for anyone. • Jumping to alternate channels—broker or otherwise—has become relatively common. Your ERP system looks fine, but when you confirm orders, the supply base tells you something entirely different. inking has shied from just-in-time to just-in-case." e key to thriving, which I will discuss in a future article, is reducing the surviving attri- butes even when we know we can't eliminate them. I will explore how to turn survival mode into a thriving relationship with your supply chain. SMT007 Mark Wolfe is the principal of Wolfe Consulting, LLC. Mark Wolfe