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Decision Quality

Stop Optimizing Plans. Start Investing in Decisions.

May 12, 20263 min readKevin Cordeiro

I have yet to meet a supply chain plan that's survived contact with reality.

Reality is messy. It requires constantly dealing with demand changes, supply disruptions, and lead time flux. Which is why investing in decision quality matters more than improving planning accuracy at the margins.

Plans matter, but they can't see around corners.

An MRP can accurately explode demand through the BOM and generate orders that tie back to the MPS and DRP. But it won't account for every supplier delay, lead time change, quality issue, or the dozen other things that'll go wrong.

That's the gap operators have to close every day.

It’s not about having all the information, but about having sufficient information and space to confidently make high-quality decisions.

The context for planning lives in systems of record: the ERP, WMS, and planning systems that answer questions about how much to buy and when; the optimal balance between service levels and cost; and how to distribute inventory based on demand forecasts.

The bigger problem is the missing operating context once the plans are in motion.

A supplier is short 20 cases or late 15 days. How fast does the exception surface, and how effective is the response? This operating context rarely shows up in the system of record first. It's shared via spreadsheets, PDFs, emails, chat threads, texts, and phone calls.

According to IDC, roughly 80% of enterprise data is unstructured or semi-structured. And that’s often where the supply chain operating signals live.

This scattered context leaves teams hunting for information, reconstructing what happened, and filling gaps just to keep things moving. Between chasing updates and manually coordinating across teams, there's little room left to make effective decisions and contain the risk. So the only options left are expensive ones — expediting, shuffling production, and deprioritizing orders.

How are you setting up your team with the information and space they need to make better operating decisions under uncertainty?

Miniature supply chain scene with retail, warehouse, factory, cargo ship, train, truck, and plane against a world map