The “Last 8%” of Supply Chains: Where Bias and Avoidance Undermine Performance
The “last 8%” problem, as described by JP Pawliw, refers to the critical conversations and decisions teams routinely avoid – stopping just short of addressing the hardest truths. This dynamic is not confined to leadership or team performance; it’s deeply embedded in supply chains. Sales, procurement, operations, and finance each make decisions that appear rational in isolation, yet collectively erode liquidity, resilience, and working capital efficiency. This is supply chain bias: the systemic avoidance of cross-functional trade-offs. Whether rooted in a “family” culture that avoids conflict, a transactional culture that prioritizes silos, or a fear-based culture where silence prevails, organizations leave performance on the table. Closing this last 8% requires courage, connection, and the willingness to confront the uncomfortable truths shaping inventory, receivables, and payables. Until then, the most damaging risks aren’t in disruption – they’re in the decisions we avoid.