It is one of those situations that appears surprisingly often in interim management: the company is growing, demand is there and the team is working at its limit – yet the supply chain does not work.

Out-of-stocks in one area, excess inventory in another and permanent firefighting everywhere. The obvious explanation is: “We need to plan better.” The uncomfortable truth may be different: the operating model does not fit the business model.

Symptom thinking vs. system thinking

Many organizations work on symptoms: improve the forecast, enforce process discipline, replace tools or add resources. This can have a short-term effect, but it leaves the underlying problem untouched.

A system designed for stability cannot manage volatility effectively.

The classic mismatch

Consider a D2C business with campaigns, high volatility and rapid market change. If the operating model is forecast-based, uses long lead times and relies on rigid planning cycles, the consequences are familiar: forecasts are permanently wrong, Sales intervenes constantly, Manufacturing runs behind demand and Supply Chain operates in firefighting mode.

The problem is not necessarily the people. It is the system.

How to recognize the mismatch

Typical indicators include no clear cut-off for changes, no separation between base demand and campaigns, daily planning changes, no real S&OP/S&OE governance, unclear roles and a growing landscape of shadow tools and spreadsheets.

The real challenge

The central question is not “How do we execute the existing process better?” It is: “Which operating model does this business model actually require?”

A possible solution

For volatile environments, a hybrid model can combine forecast and pull logic. A forecast provides medium-term direction for capacity and sourcing, while shorter-term demand signals and actual orders control execution. Clear S&OP/S&OE governance defines who may change what, when decisions are frozen and how exceptions are escalated.

A single source of truth is equally important. When Sales, Supply Chain and Manufacturing each work with their own numbers, no amount of meeting discipline will create a stable operating system.

Why transformations fail

Transformations often fail because expectations are wrong: rapid visible effects are expected from a structural redesign. Stabilization can happen quickly; changing planning logic, supplier lead times, responsibilities, data and management routines takes longer.

The important point is to distinguish immediate recovery measures from structural transformation – and manage both deliberately.

Conclusion

Operational excellence is not created simply by executing an unsuitable model more efficiently. It is created when business model, planning logic, governance, data and execution system fit together.

Excellence does not come from better execution alone – it comes from the right system design.