Accuracy- yet another value. What does it mean, in fact?
I was asked many times: what is wrong with us, we had a sales growth over 50% this year yoy. And it was true, that company was growing unbelievably fast. That company was not unique in this sense. The only problem they had was they never planned that growth, despite it was quite predictable. We call this sales modesty….
Accuracy, in Supply Chain, if we speak about planning, it is measured of course by forecast accuracy. If we speak about stocks, we measure stock accuracy. If we speak about delivery, we measure delivery accuracy, or ON TIME IN FULL – OTIF, etc, etc.
In Supply Chain- accuracy is a state of mind.
More mature a Supply Chain is, more exactly is indicating the “hour”, just like a Swiss watch!
Coming back to sales, our watch is not working well when it is in delay (missed the sales target) but equally when it is too fast (oversold). Both situations will lead to overheating the mechanism so we are in danger. This is why the accuracy is a leading value, it helps us to meet our future expectations. How do we do that? This is another question.