Information Availability in Supply Chain: Why We Still Haven’t Addressed a 30-Year-Old Problem

I keep coming back to this question whenever I meet with clients eager to discuss AI, automation, or “transforming their supply chain.” They’ll share plans for a new system or an upcoming AI project, yet often can’t answer one of the most fundamental questions in distribution:

How is your product moving?

After three decades in this industry, I can confidently say the core problem isn’t a lack of data. It’s a lack of usable information. I’ve been having this same conversation since the 1990s.

From “Not Enough Data” to “Too Much, But Still Not Useful”

Thirty years ago, systems were manual and information was sparse. Today, the pendulum has swung the other way. Companies often have ERPs, WMSs, BI tools, and endless spreadsheets, but that doesn’t mean they have the right information. I see two very different realities:

Manual or Light-Digital Operations

SMEs often run on light ERPs, Excel files, and deep operational know-how. Their strength lies in agility and close customer relationships—they can adapt quickly and keep service levels high. They usually have a solid grasp of revenue and margin, which reflects strong financial discipline. However, when it comes to metrics like SKU velocity, inventory turnover, or cube utilization, the data isn’t always structured for strategic decisions. Financial numbers don’t reveal how a warehouse behaves. The challenge is turning that practical knowledge into actionable insights that support growth without losing the flexibility that makes SMEs competitive.

Digitalized or “AI-Ready” Operations

These companies face the opposite challenge: an abundance of data spread across multiple systems, often with inconsistent accuracy. Teams spend more time validating than acting, which slows progress. Many assume that having lots of data means being ready for AI—but AI is only as good as the information feeding it. Without clean, aligned data, advanced tools won’t deliver meaningful insights. It’s like using a GPS with an outdated map: the tech is there, but the direction isn’t.

The Great Disconnect

Another recurring challenge is the gap between what executives value and what supply chain teams need.

Executives look at financial metrics like gross profit and revenue growth, while operational teams need visibility into SKU profiles, inventory accuracy, productivity, order cycle time and stock movement patterns. sides speak in KPIs, but not the same language. As I discuss in my supply chain KPI guide, when financial metrics overshadow operational ones, the supply chain becomes reactive rather than strategic.

A Simple Question Most Businesses Can’t Answer

One of the first questions I ask any client is:

How are you selling your product?

It sounds simple, but it exposes everything:

• Which SKUs drive volume vs. margin?
• How do these items move?
• How accurate is your stock location data?
• What drives spikes or slowdowns?

Without this kind of visibility, you can’t design a warehouse, pick the right automation, or implement AI responsibly.

Walk Before You Run

The pressure to adopt automation or AI is intense. But here’s the truth I’ve learned from decades of hands-on work:

If your information isn’t accurate, accessible, and fit for purpose, no technology will save you.

Before investing in anything new, the fundamentals must be solid:

• Inventory accuracy
• Defined processes
• Clear, aligned KPIs
• Validated reporting
• Understanding of SKU movement and velocity

These fundamentals form the backbone of any successful technology initiative

Why Haven’t We Solved This?

Despite new tools like cloud platforms, APIs, and dashboards, the underlying issue remains the same: fragmented information, siloed teams, and misaligned priorities. Whether a company runs on Excel or claims to be AI-ready, the result is identical: poor decisions based on incomplete information.

Final Thoughts: Information Is the New Infrastructure

If you want to grow, automate, or modernize, the first step isn’t choosing a system; it’s ensuring your information can support smarter decisions. AI won’t replace missing data, a new ERP won’t fix broken processes and automation won’t make inaccurate inventory accurate.

But when your information is trustworthy, complete, structured, and consistent, everything becomes possible. These fundamentals pave the way for better investments, faster decisions, stronger operational performance, more reliable forecasts, and technology that actually delivers. Make sure you can answer the fundamental questions about your business. No tool or algorithm can replace the value of accurate, accessible, actionable information.

If you’re preparing for growth or evaluating a new tech investment and want to understand whether your information is ready for the next step, let’s talk. Three decades in, I’m still helping clients bridge the gap between the data they have and the information they need, and I’d be happy to help you do the same.

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Stephan is a Partner in Consulting at LIDD, working out of our Montreal and Los Angeles offices to help clients navigate complex challenges and achieve strategic success. With a long and diverse career in warehousing and supply chain management, Stephan brings valuable expertise to LIDD’s Consulting and Technology practices.

 

 

 

 

 

 

 

 

 

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