NEWS

Continuous improvement makes the supply chain more efficient: OGSM

Tuesday, January 22, 2019

The human being has a tendency to perform certain actions in consequence of the emotion of the moment, however, as time passes and the emotion decreases, the desire to move forward with the initiated also diminishes. This is the same thing that happens in companies, when they reach a new association they all have plans, objectives, ideas and a lot of motivation to make it happen; in logistics companies, these objectives range from reducing transport costs, centralizing logistics operations, to retaining collaborators; unfortunately, with the time and day to day operation the original objectives are moved away to solve what happens at the moment.

There is an approach to business management called OGSM (Objectives, goals, strategies and measurements) which provides clear objectives and identifies the strategic options to achieve them. To establish (and maintain) a disciplined approach to business management, it is very helpful to use a proven process like OGSM which provides clear objectives and identifies the strategic options to achieve them, a model to provide alignment, transparency and metrics that really define the success.

 OGSM has four components:

1. Objective: define a global vanguard vision linked to the vision of the company

2. Goals: specific, measurable, achievable, results-oriented, and with execution deadline S.M.A.R.T.

3. Strategies: choose the actions to achieve our objective.

4. Measures: the numerical reference points to verify the progress and determine if the strategies work.

Nothing is magical, you must put a lot of effort and determination in every project, however, by clearly defining these components from the beginning, all the parties involved can focus on achieving the commitment promised every day. Then, if there are deficiencies, they can be identified daily and the responsibility can be assigned to specific individuals to remedy them.

OGSM helps all goals, strategies and measures to be directly connected to the overall objective, provides better standardization for processes and measurement, from the beginning and helps to quickly identify deficiencies, leading to root cause analysis and the creation of a solution.

In addition to the OGSM, organizations need to establish daily tactical processes and constantly monitor the objectives compared to the actual results. And in addition to this, we must seek to keep all employees motivated, because if they are satisfied and happy in their work, this will be reflected in the increase in productivity and periodic results.

At DICEX, we determine objectives and goals to be met, seeking to improve as an organization inward and outward. Our collaborators seek to contribute ideas that are taken into account for the growth of all, and the company seeks that they feel comfortable in their workplace motivating them and giving them the necessary tools for their personal and professional growth. Source: https://www.inboundlogistics.com/cms/article/improving-supply-chain-performance-by-focusing-on-daily-improvement/?news=1