The cost of not changing 

June 11, 2024
By Jason Capes | 20 years in supply chain

Whether in life or at work, it can be really tempting to maintain the status quo, even if there are warning​ signs that a change is needed.

There is a saying that has stuck in my head from early on in my career: “You don’t have to be an expert in everything. You just have to know where to go to find experts and the resources for help.”

At the plant and site level, it’s easy to say, “We don’t have time,” “We have been doing it this way forever,” and “We don’t have the resources to execute.”

And while those may be true, it’s also true that NOT changing brings its own costs.

Two quick examples?

First, losses in efficiency with the compounding effects of outdated processes.

Second, increases in operational costs. As time goes on, YOUR competitors and YOUR customers put more demands on you to improve.

If you’re fighting for the lowest cost to effectively run your business, can you really afford not to kick the tires on different options?

​This is where it gets interesting …
​

Warning signs

These are some of the biggest signs that you need to make a change. You don’t feel like you’re getting the attention and focus from your suppliers. Whoever they are, whatever they’re doing, if you’re not happy, take note. Pay attention to what’s bothering you.

• They aren't bringing you innovative ideas and insight into your business. 
• They don't use the newest technology to cut costs. 
• They drop-ship emergency orders to you in days when you needed it in hours. 
• They don't provide services outside of the simple delivery of parts. 

It’s common to think about how hard it would be to disrupt your current supply chain process. And there’s validity in that thought, but it’s important to also consider the cost of inaction.​

Nothing improves without change

Today, technology is evolving at the fastest rate in history. There are cars that can drive themselves. That’s the world we live in. If your supplier isn’t using modern technology, your supply chain is falling behind.

Sticking to outdated systems leads to inefficiencies in logistics, procurement, and inventory management. Accepting those drawbacks results in wasted time and resources.

Without the benefits of streamlined processes and optimized inventory levels, you’ll face higher operational costs, including excess storage fees, and downtime.

If you don’t make a change, but your competitors do, you’ll be at a competitive disadvantage.

Anything that makes it harder to keep up with the speed and efficiency of the market is a cost worth avoiding. Plus, as regulations change, especially concerning environmental sustainability and ethical sourcing, teams that don’t adapt may face regulatory compliance issues.

You can view not making a change as safe, easy, or even as a good decision, but it all adds up. All these factors can lead to a direct financial loss.

Dealing with an imperfect supplier just sets your company up to spend more to achieve less.

Change isn't as scary as not changing

Positive or negative, the idea of change is a powerful motivator.

In the workplace, we often focus on the negative. IF there’s downtime, we’re in trouble. IF we try to change, we could fail. But that’s an incomplete view.

Change is often a path to a better place. We just need to take the steps to get there. Organizational alignment and commitment from both the leadership level along with the site/plant level will ensure success in all aspects of your business.

​Don’t let the cost of inaction determine your future. Nothing improves without change.

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