Global Supply Chains Special Report 10/31/2011
Professor Wilding is interviewed in the Sunday Telegraph (U.K.) special report on Global Supply Chains. http://www.lyonsdown.co.uk/publications/2011/globalsupplychains.pdf What is the principal challenge facing supply chains today? Severe pressure on resources. Many raw materials are in short supply. Oil is starting to run short, so prices will keep rising. Money is tight, so organisations can’t afford new machinery or large inventories. Lack of space and skilled manpower can be a major constraint. Even water is a scarce and under-appreciated resource. What can we do about it? One solution is to rethink the way we use resources. Instead of the “consumption” model – buy something, use it, throw it away – we need a more sustainable model where resources are shared or rented. Does every household need its own lawnmower? Does every company need its own warehouse, factory and vehicle fleet? Or could asset sharing and collaborative working increase efficiency and reduce wastage and transport utilisation? What other new approaches could supply chains take? Embrace new technologies and economies of scale – for example, 3D printing could enable spare parts to be manufactured locally instead of being shipped around the globe. And products could be shipped in cheap, “vanilla” forms and then tailored for local markets. Do we have the skills to meet these challenges? Supply chain skills are another scarce resource. Traditional supply chain skills were technical: inventory management, requirements planning, transport and so on. But the order-winner today is “emotional” intelligence: the ability to build relationships and collaborate with suppliers, customers and even competitors to create more sustainable supply chains. How can we develop these “emotional” skills? At Cranfield, we teach both technical and emotional skill sets in our MSc in logistics and supply chain management, and we find that it is possible to develop emotional intelligence in people with a technical supply chain background. Another useful approach is to bring in people from diverse backgrounds, such as marketing and finance, because they understand other aspects of the business such as cost-to-serve. Comments Your comment will be posted after it is approved. Leave a Reply |
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