In a single plant, a stockout usually has an obvious owner. Across a network of sites, it rarely does. Having worked on stockouts across a 14-site medical device network, I’ve seen the same pattern: every individual stockout gets expedited, and the system that produces them never changes.
Why they keep coming back
- Many causes, no common view. Supplier delays, quality holds, capacity, planning parameters and transfers all show up as the same symptom.
- Local optimization. Each site manages its own metrics; the network-level cost is nobody’s KPI.
- Stale planning settings. Safety stock and lead-time parameters drift from reality.
- Expediting as the system. Heroics fix today’s shortage and hide tomorrow’s.
A practical fix
- One list. Track every stockout across the network in one place with a consistent definition.
- Classify by root cause, not by site.
- Rank by dollars. Lost or delayed revenue tells you where effort pays back first.
- Govern across sites. A regular cross-site review gives each cause an owner and a date.
- Fix the system. Update parameters, supplier agreements and hold processes so the cause does not return.
The goal is not zero expediting; it is fewer surprises, measured in dollars. See the 14-site stockout case study, learn about my operational excellence work, or get in touch.
