Talking Supply Chain: The Playbook for Success

The movie Moneyball ushered data analytics into the mainstream. Based on the Michael Lewis book that documented how Oakland Athletics’ General Manager Billy Beane leveraged data to create a winning baseball team, the movie proved that measuring performance was a winning strategy.

The supply chain is no different, and while most companies today collect data in nearly every facet of their operation, few are using that data effectively. According to Stan Fawcett and Mike Knemeyer, the problem isn’t in the data itself, but rather in the way it is being measured.

Knemeyer gave an example of his favorite football team, the Cleveland Browns.

“They have also turned to measurement to find solutions for poor performance in a highly competitive environment. Back in 2016, they hired Paul DePodesta who had worked for the Oakland A’s and was a key figure in Moneyball.  The Browns are hopeful that by using measurement and data to improve their processes and empower their people a Super Bowl win is in their future. It isn’t easy, and measurement alone won’t get them there–but measurement is a foundational capability for success,” he said.

The duo, along with Sebastian Brockhaus and Amydee Fawcett, penned an article for the November 2023 issue of Supply Chain Management Review, “Get Measurement Right to Solve Supply Chain’s Toughest Challenges,” that laid out what they call the Supply Chain Playbook. In it, they show how measurement is at the heart of generating marginal gains, which when put together, lead to big operational wins.

The pair joined Talking Supply Chain host Brian Straight to discuss their simple three-step approach to getting measurement right.