Olajide on His Breakthrough DOH Reduction Model

Olajide on His Breakthrough DOH Reduction Model Olajide on His Breakthrough DOH Reduction Model

In the aftermath of the COVID-19 pandemic, the supply chain, usually hidden from public view, became one of the most discussed topics in homes, boardrooms, and parliaments around the world. The sudden visibility came not from triumph but from failure. Supermarket shelves stood empty in London and Lagos. Containers stacked up for weeks at Felixstowe in the UK and at the Port of Los Angeles in the United States. Semiconductor shortages crippled the auto industry, forcing factories in Sunderland, Detroit, and Munich to pause production lines. Even simple items like paracetamol or fresh fruit became harder to guarantee. The fragility of the global supply chain was laid bare, and it became clear that the existing system was no longer fit for the demands of a connected, disrupted, and fast-moving world. The World Bank estimated that disruptions in 2021 alone erased more than $4 trillion in global trade value, while McKinsey calculated that companies could expect supply chain shocks lasting a month or longer every 3.7 years. In such a climate, the words of John Oluwaseun Olajide resonate with both urgency and foresight: “Every extra day goods sit in storage is money lost, agility wasted, and competitiveness eroded. My goal is simple — we must build leaner, smarter supply chains fit for the future.”

Olajide, a seasoned professional at Lipton, has emerged as a leading voice in this transformation. His peer-reviewed research paper, “A Strategic Model for Reducing Days-on-Hand (DOH) Through Logistics and Procurement Synchronization”, published in IRE Journals, is rapidly gaining attention in both academic and industry circles. Unlike many papers that dwell on abstract models, this work combines rigor with real-world applicability, and the framework it proposes has been hailed as a turning point in logistics thinking. The focus is on Days-on-Hand (DOH), the critical metric that measures how long inventory sits in storage before it is sold or used. In industries where speed and freshness matter — pharmaceuticals, fast fashion, perishables, high-tech electronics — high DOH is not just inefficient, it is existentially dangerous.

“When we dug into the data,” Olajide explained when we met, “we saw firms averaging DOH of 90 days or more in sectors where 30 should be the standard. In the automotive industry, some manufacturers carried nearly double the stock they could manage efficiently. The conclusion was obvious: this wasn’t just a problem of poor demand forecasting. It was a structural problem caused by the lack of synchronization between procurement and logistics.” His model therefore emphasizes aligning procurement timing with logistics scheduling and adjusting inventory policies dynamically, all enabled by real-time data sharing and collaborative planning across teams.

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The numbers show why this matters. Deloitte estimated in 2022 that excess inventory ties up 25–30% of working capital in global businesses. In the U.S. retail sector alone, carrying unnecessary stock drained over $300 billion a year through warehousing, insurance, and obsolescence. For electronics, a high DOH often meant products lost their competitive edge before reaching shelves. For grocers, every day extra in storage translated directly into higher risks of spoilage and write-offs. “We underestimate how destructive DOH can be,” Olajide told me. “It is not just a financial drag. It damages sustainability efforts, erodes competitiveness, and even undermines customer trust. At its heart, it is a symptom of broken coordination.”

His study is distinctive not only for diagnosing the issue but also for offering a practical roadmap. Built on a mixed-methods design, the research combined extensive interviews with supply chain practitioners in Nigeria, the U.S., and Europe with quantitative analysis of operational data. This dual approach allowed the team to validate their model both in theory and in practice. “I didn’t want a framework that sat on a shelf,” Olajide said firmly. “I wanted one companies could apply in their warehouses tomorrow and start seeing measurable results.”

Those measurable results are impressive. In controlled simulations, organizations that implemented synchronized procurement-logistics models cut DOH by 15–25% in just six months. For consumer goods companies, the savings ran to tens of millions annually. In pharmaceuticals, emergency orders — which can cost up to 40% more than planned shipments — were reduced by half. In manufacturing, firms freed up working capital and reduced carbon emissions by eliminating unnecessary warehousing and redundant transport.

For Olajide, however, the most important breakthrough is cultural as much as technological. “Historically, procurement and logistics teams sat in different corners of the business, chasing different targets,” he said. “Procurement often focuses on bulk purchases at the lowest cost, while logistics is left scrambling to store or distribute without knowing what’s coming. My model forces these teams to sit at the same table, share the same data, and align their decisions. When you get that alignment, the numbers improve — but more importantly, the culture shifts. It builds trust, transparency, and a sense of shared purpose.”

That cultural shift is especially relevant in the UK, where supply chains in 2022 were under unique stress. Brexit had introduced new layers of customs checks, paperwork, and friction at borders. The Port of Dover and the Eurotunnel experienced recurring bottlenecks, while Felixstowe — Britain’s largest container port — saw record congestion, with some ships diverted to Rotterdam or Antwerp. Inflation was running at its highest in decades, fueled partly by supply chain costs, and retailers faced rising energy bills for warehousing and transport. At the same time, the UK had one of the lowest warehouse vacancy rates in Europe — below 2% in the Midlands “golden triangle” logistics hub — forcing firms to rethink how much stock they could realistically hold. In this context, Olajide’s words take on added weight: “The UK offers a clear lesson. When space is tight, energy costs are high, and borders add delay, the only real solution is synchronization. You cannot afford inefficiency. You must get procurement and logistics moving as one, or you lose the race.”

Technology is the enabler of this synchronization. In 2022, Gartner estimated that 34% of companies globally had adopted AI in supply chain planning, with another 20% running pilots. IoT devices tracked shipments in real time, and blockchain pilots promised transparency in procurement contracts. Yet adoption varied dramatically by region. In the UK, a government report found that just 15% of businesses had adopted AI, with most of those concentrated in large firms; in retail and healthcare, adoption was below 12%. For Olajide, this gap represents both a challenge and an opportunity. “AI will not replace managers,” he said. “But managers who embrace AI will replace those who don’t. My model provides the structure for AI to be effective. Without synchronization, AI insights remain isolated in silos. With synchronization, they become actionable intelligence that drives performance.”

Nowhere is this more visible than in UK fashion and retail, sectors both dynamic and vulnerable. A Vogue Business survey in 2022 revealed that nearly one-third of British retail planners did not feel ready for another shock, even as inflation and the war in Ukraine rattled operations. Generative AI was emerging as a tool to forecast demand and enable real-time visibility, but only a handful of retailers had deployed it meaningfully. Harrods’ supply chain team, for instance, acknowledged the risks of bottlenecks during high-demand promotions such as beauty advent calendars. Smart warehousing, powered by RFID, robotics, and blockchain, was starting to reshape UK logistics, with companies like Hugo Boss and LVMH investing in automation. Yet concerns about job displacement remained, and smaller brands struggled to keep pace. Olajide framed it differently: “Technology alone does not transform a supply chain. Structure does. If procurement and logistics are not aligned, AI cannot save you. But if they are, AI becomes a force multiplier.”

The potential for transformation is immense. Initiatives like the UK’s Future Fashion Factory and experiments with on-demand garment production demonstrate how AI and machine learning could shorten lead times, bring manufacturing closer to home, and reduce waste. Currently, just 3% of clothing sold in the UK is domestically produced. With synchronized procurement-logistics and smart manufacturing, that figure could rise significantly, revitalizing local industry while slashing carbon footprints. At the same time, UK research showed a paradox: AI improved operational performance but often increased uncertainty and risk unless paired with innovation and flexibility. Olajide’s structured synchronization model offers a way to harness AI’s benefits while mitigating its volatility.

Globally, too, the resonance is clear. In Nigeria, where supply chain inefficiencies contribute to food inflation rates above 17%, his model could cut post-harvest losses by up to 30%. In the United States, where warehouse capacity hit record lows in 2022, trimming DOH could unlock badly needed space. In continental Europe, where surging energy costs inflated storage expenses, reducing excess days in stock translated directly into savings. “The beauty of synchronization is its universality,” Olajide observed. “Whether you are a multinational in Chicago, a retailer in Lagos, or a fashion brand in London, the principles adapt. They are not bound by geography. They are bound by the logic of efficiency.”

Behind the numbers and the theory lies a personal passion. When asked why he devoted his career to supply chain research, Olajide paused, then smiled. “I’ve always been fascinated by the invisible backbone of business. People celebrate brands, products, and sales, but behind every success lies a supply chain, moving quietly in the background. The pandemic exposed what happens when that backbone cracks. My drive is simple: to make it stronger, smarter, and more resilient.”

The academic world has taken note. Within its first year, his paper attracted over 30 citations, a significant milestone for a logistics-focused study, and was debated in professional forums from Lagos to London. Industry executives are listening too. A senior manager at a global retail chain described the framework as “the sweet spot between strategy and execution.” Olajide remains characteristically modest. “This is not about me,” he insisted. “It is about the companies that will embrace synchronization, train it into their DNA, and turn it into second nature. Those are the companies that will thrive. Every unnecessary day inventory sits idle is not just lost profit. It is a signal of inefficiency. And inefficiency is the enemy of resilience.”

As we concluded our conversation, I asked him to look ahead. His response was immediate, as though he had rehearsed it many times: “The future of supply chains must be predictive, adaptive, and sustainable. Predictive — meaning systems that anticipate demand shifts rather than chase them. Adaptive — meaning procurement and logistics that flex in response to pandemics, geopolitical shocks, or climate disruptions. And sustainable — because efficiency without responsibility is hollow. This model is just one step, but it is a foundation for building that future.”

With businesses worldwide struggling to balance recovery with transformation, John Oluwaseun Olajide’s voice carried clarity and authority. His work on reducing Days-on-Hand is not just a technical achievement. It is a manifesto for building supply chains that are leaner, smarter, and resilient enough to weather whatever comes next. In a global economy still charting its uncertain path, one thing is certain: leaders like Olajide will shape the backbone of business for decades to come.

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