E d w a r d H . F r a z e l l e , P h . D . minute I had diagnosed their inventory ills without ever stepping foot in one of their offices or operations. He said, “You must be some kind of supply chain mastermind.” I'm not a genius. What I shared with him and just shared with you is the root cause of the large majority of inventory ills in every supply chain. The illness is the misalignment of the metrics of the elements of the supply chain. Supply Chain Integration There are many and various mistakes in the wrong chain model described above. Sometimes it’s helpful to learn from mistakes in creating the correct model. One mistake above is the silos of decision making. We correct that mistake in the RightChain™ Supply Chain Integration Model (Figure 6) by having all the activities of the supply chain under one decision making roof. Another major mistake in the wrong chain model is the focus on unit cost reduction achieved primarily by independently maximizing the utilization of resources in the supply chain. The RightChain™ corrects that by developing and implementing an overarching objective function tominimize total logistics cost while simultaneously meeting the | 25


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