Our solution hasn't worked, what should we do?

Jackson Foods

S = Had problem, implemented solution

C = Solution hasn't worked

Q = What should we do?

Jackson Foods' supply chain costs $12 million a year to operate, or 14% of NPS. Not only is this figure high compared to competition, the system is extremely inefficient. As a result, the company has been experiencing high out-of-stock levels, resulting in poor on-time delivery and incomplete orders, as well as large backorders and credits. Inevitably in the PMG business, an inability to supply orders fully will result in loss of market share.

Jackson has recently taken steps to change its terms of trade, in an effort to increase order sizes and reduce the number of delivery points. However this action has made little difference to the supply chain's cost or efficiency. And it is clear that continuation of the low level of service at this high level of cost will have a profound impact on Jackson's financial performance.

If Jackson is to protect its financial position, both now and in the future, it must begin to see its supply chain as a source of competitive advantage, and target cost and service improvements as part of a long-term bid to become the most efficient provider in the industry.