Root Cause Analysis is a structured approach to identifying the underlying reasons behind recurring supply chain or inventory problems—such as frequent stockouts, forecast errors, or service failures. Rather than treating symptoms, RCA seeks to prevent issues from reoccurring. It involves data gathering, process mapping, and using tools like the “5 Whys” or fishbone diagrams to drill down into problems. Inventory optimization platforms often include RCA capabilities or integrations. They help supply chain managers uncover patterns—such as chronic supplier delays or demand signal distortion—and take corrective actions that improve long-term performance.
