Quality-Cost Dilemma in Supply Chain - Ep 160
In a dialogue with Lokad's Head of Communication, Conor Doherty, Lokad CEO Joannes Vermorel discusses the quality-cost ratio in supply chain management. Vermorel emphasizes that quality refers to decision-making, not product attributes, and that client-perceived quality may not align with optimal supply decisions due to cost. He criticizes traditional KPIs, arguing they don't reflect genuine quality. Vermorel also discusses the role of Large Language Models (LLMs) in supply chain management, noting they can lead to smarter decisions but can inflate IT budgets. He suggests the quality-cost dilemma is a meta game, requiring software engineering to solve supply chain problems and assess trade-offs.