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.