How EOS Companies Deal With Supply Chain Logistics

Delegation of Work with EOS

When companies implement EOS practices, they defy the idea that the only way to achieve success is to overwork yourself. That means you don’t have to work sixty plus hours a week, which allows you to spend time doing what you love or seeing the people you love. EOS helps businesses put the right people in the right positions so that they are in return able to delegate work. It’s understanding that there are tasks that need to be done and goals that need to be reached, but there are other people that can help you along that journey. More often than not, two heads are better than one. So, having different people who share their input and their support means you do not have to move mountains alone. When individuals begin to trust others and delegate to them, it invokes incredible changes not only for the business, but also for their quality of life.

“…what I find so exciting is when people get clear about what their ten-year target, three-year picture, or one-year plan is. When they get clear about that…they can begin to compartmentalize the journey that they have rather than trying to do it all at once or carrying all that imagination.” – Mike Ryan, (11:38)

Top 3 Issues with Inventory

When the pandemic hit, it took away the ability for companies to be dependent on a predictable and repeatable supply. As a result, businesses started loading up on products when they became available because they don’t know when that chance will come again. Because of this, the top three issues people are experiencing with inventory are:

  1. Their customers don’t like them because they don’t have the right product at the right time.
  2. They have record amounts of inventory, but they also have a record amount of backorders, which means they have too much of the wrong stuff and not enough of the right stuff. So, when they see record levels of inventory, they will most likely also see record low levels of cash flow because that cash is frozen in inventory.
  3. They don’t feel like they have enough space for their inventory. The flaw in this thinking is that if they all of a sudden have an empty warehouse, they will fill that one too. The solution is to clean out the space they already have before just obtaining more space only to fill it all up as well.

One of the main reasons people are experiencing these inventory problems right now is because of the lead time it takes to obtain inventory. If people are worried they aren’t going to receive their inventory in time, they buy more than they need. Then there’s an influx of products which causes the supply chain to be congested. The best thing businesses can do is try to predict lead times as best they can and try to be as proactive as possible.

“When the predictability and repeatability goes out of the supply chain, the ability to do ‘just in time’ goes away with it.” – Mike Ryan, (23:27)

Transform Your Business Today!

For more conversations like this, check out other episodes of Where There’s a Will, There’s a Way, where Will Crist talks with entrepreneurs and business leaders about the life-changing effects of the EOS model. For more information on how you can transform your business, schedule a call with Will today!

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