Archive for the ‘Industrial and Operations’ Category
Zeynep Ton from HBS on Supply Chain Layoffs. Her articles touches on why having the right product in the right place at the right time means everything to customers. Her contention is that more labor can equal an increase in profit margin.
“My research reveals that what happens in the last 10 yards of retail supply chains is really important. Customers often experience stockouts not because the supply-chain plans are poor, as we often assume, but because they are not executed well at the stores.” Boots on the ground matter a lot. “When there aren’t enough workers on the selling floor, it’s those ‘boring supply-chain activities’ that are affected first,” Ton observes. “If employees are spread too thin, they’re going to be rushed. Then they either make mistakes or take shortcuts to get their work done.”
On why she studies supply chain, her answer makes me fall in love with my IEOR classes once again:
“Someone asked me why I’m interested in labor in the supply chain. The answer from my head is that we have evidence of how important people are to the total equation. So my future research will definitely focus on identifying better process designs and labor management practices at stores and distribution centers with the goal of improving operational performance and ultimately increasing profits and wages and offering a better work environment. The answer from my heart is that I would like to help improve the working conditions of so many hardworking, hard-pressed people.”







