Supply chains are full of legitimate, competing objectives. Procurement wants the best price and availability. Planning wants an accurate production plan. Suppliers need enough visibility to secure materials and capacity. Manufacturing wants to avoid interruptions. Finance wants to limit inventory. Sales wants customers to receive what they ordered, when they expect it.
The problem isn't that these objectives are wrong. The problem starts when every participant optimizes its own piece without enough visibility into what is happening around it.
A supplier doesn't fully trust the forecast, so it keeps a buffer. A buyer isn't confident the supplier can respond quickly, so it carries more inventory. Demand changes, but the change reaches upstream slowly. A constraint exists somewhere in the network, but the people who need to know about it discover it only when it becomes urgent.
Then the familiar cycle begins: expedite, escalate, replan, call, email, update a spreadsheet, reconcile another spreadsheet—and carry a little more inventory, just in case. Everyone is protecting the business. Yet collectively, the network can become less efficient.
Very intelligent companies can still make collectively inefficient decisions. That distinction becomes even more important as AI gets better.