A Happy Seasonal Supply Chain: Remember it’s people that have relationships, not computers.
The Board room at Claus Inc. was a scene of deep gloom.
Chairman & CEO (imposing, white-bearded figure): Our critical deadline is fast approaching and our throughput at the factory has slowed considerably. Why?
Supply Chain Director (young, recently appointed Cranfield MSc): A few years ago, on the advice of our ‘expert’ advisers, we invested heavily in automating our supply chain using the latest AI technology. It worked a treat because it didn’t need any human involvement that might mess things up. But I have to report that recent global supply problems have completely disrupted our system. I blame the Procurement Department for losing touch.
Head of Procurement (red-suited lady, beady eyes): We lost our best staff due to your AI. Now the system is broken and we don’t have any useful contact with our suppliers. We tried speaking to one of our major, far-eastern ones, a clerk told us that we were somewhere down the list. Then he hung up on us. I expect the Commercial Department will still have something on them?
Commercial Director (mature gentleman in rumpled pin-stripes): Of course I’d like to help but, all we have to work on these days are computer generated agreements in line with what the AI thinks we need. In recent times there’s never been much reason to talk to anybody, the only contact details are web addresses. I told you this was going to happen!
Sales Director (very smooth operator, a bit shifty): This is all very well but we must have product for our customers and if we don’t get it, we’re doomed (thinking about his commission)! I also told you so, I knew it would go south! Probably the factory needs a kicking.
Production Director (engineering type in overalls): Well don’t blame my guys, we can only work with what we are given! Shortages, surges, stockouts, warehouses full of the wrong stuff, freezing weather, we still keep the wheels turning but only just!
Mrs Claus, Head of Customer Services (homely type, knitting): This is all very serious and if we don’t fix it quick, we’re going to let down a very large number of children and put a complete damper on Christmas.
Chairman & CEO: Despite all our wonderful systems no one here has a handle on the situation. It seems we have forgotten how to manage relationships with our key suppliers. There is no time to lose, (using his best dictatorial CEO-style) I’m moving Mrs Claus to a new post of Relationship Management Director. I want her to go and talk to the suppliers and set up new contracts with joint teams to manage them. We should never forget that it’s people that have relationships, not computers.
For more light-hearted lessons click here