Since Bill Lewis’ best selling book, Moneyball and the ensuing movie starring Brad Pitt came out, light bulbs have been going off for business leaders everywhere as they begin to draw parallels between the form of statistical analysis Oakland A’s general manager Billy Beane used to take a small market team with a bleak outlook to a consistent contender and the metrics they need to run their own organizations.
That analysis has a name: sabermetrics – a phrase coined by Bill James to describe the specialized analysis of baseball through objective evidence – especially statistics that measure in-game activity.
As Steve Banker points out in Moneyball Logistics, parallels can certainly be drawn in the world of logistics and supply chain management.
That said, he admits that the formula isn’t quite straightforward. It will take a little thought to get it right for your organization – but then again most things worth doing usually do.
“I can’t claim I know the formula,” he writes, “And I think the formula will be somewhat different for every company. But I think I know how to get there.”
Interested in his thoughts on how to get there? Read the full article.