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Root Cause Analysis in Supply Chain

Applying five whys, fishbone and Pareto analysis to recurring supply chain failures.

By SupplyChain.management · Last updated

Definition

Root cause analysis is a structured investigation that identifies the underlying cause of a failure so the fix prevents recurrence.

Why it matters

Supply chain problems repeat because organisations treat symptoms. Root cause work is what makes improvement permanent.

Example

Repeated stockouts traced not to forecast error but to a purchase order approval step adding nine days to replenishment.

How to interpret it

If your corrective action is expedite, communicate or be more careful, you have not reached a root cause.

How to improve it

Use Pareto to pick the problem, five whys and fishbone to find the cause, then verify with data and confirm recurrence stopped.

Common mistakes

Stopping at the first plausible explanation, usually the one that blames another department.

Related KPIs