Complex Global Supply Chains | MIT.

Global supply chains are the complex networks of suppliers, manufacturers, and distributors that bring goods and services to consumers all over the world. They are essential to the global economy, but they are also vulnerable to disruptions.

Ways to improve global supply chain performance:

Increase transparency and visibility. This can be done by using technology to track goods and materials as they move through the supply chain. It can also be done by improving communication and collaboration between different suppliers and partners.
Improve efficiency and flexibility. This can be done by using technology to automate tasks and streamline processes. It can also be done by designing supply chains to be more agile and adaptable to change.
Reduce costs. This can be done by negotiating better prices with suppliers, optimizing inventory levels, and reducing waste.

Ways to improve global supply chain resiliency:

Diversify suppliers and locations. This reduces the risk of disruption from a single supplier or location.
Build redundancy into the supply chain. This means having multiple suppliers and backup plans in place in case of disruptions.
Invest in risk management. This includes identifying and assessing risks, developing mitigation strategies, and having contingency plans in place.
Use technology to improve resilience. Technology can be used to track and monitor supply chains for disruptions, and to help businesses respond quickly and effectively.

Here are some specific examples of how businesses can improve the performance and resiliency of their global supply chains:

Use artificial intelligence (AI) and machine learning (ML) to predict and prevent disruptions. AI and ML can be used to analyze data from a variety of sources, including weather forecasts, traffic reports, and social media, to identify potential disruptions. Businesses can then use this information to take preventive measures, such as rerouting shipments or sourcing goods from different suppliers.
Use blockchain technology to improve transparency and traceability. Blockchain is a distributed ledger technology that can be used to track the movement of goods and materials through the supply chain in real time. This can help businesses to identify and address disruptions more quickly and effectively.
Invest in digital twin technology. Digital twins are virtual replicas of physical systems, such as supply chains. They can be used to simulate and test different scenarios, which can help businesses to identify and mitigate risks.
Develop collaborative relationships with suppliers and partners. This can help businesses to share information and resources, and to work together to resolve disruptions.

By taking these steps, businesses can improve the performance and resiliency of their global supply chains, and better withstand the challenges of the unknown.

Supply Chain Quotes

“Freight mobility and movement, while not a sexy policy issue, is a highly important one. Capacity constraints and congestion on our nation’s freight rail system create many problems.” ~Bill Lipinski
“Supply Chain Management is like nature, it is all around us.” ~Dave Waters
“It’s really simple: If you’re not meeting the wants and needs of the customer, you’re done. There’s not a lot of loyalty here.” ~Doug McMillon, Walmart CEO
“Good is the enemy of great. That’s why so few things become great.” ~James C. Collins, Good to Great
“Complex global supply chains are how many companies are differentiating themselves and gaining an edge on their competitors.” ~Dave Waters
“Without change there is no innovation, creativity, or incentive for improvement. Those who initiate change will have a better opportunity to manage the change that is inevitable.” ~William Pollard
“Logistics is the ball and chain of armored warfare.” ~Heinz Guderian
“Continuous improvement is better than delayed perfection.” ~Mark Twain
“Supply chains are everywhere. From the biggest company in the world to running your household. We all have supply chain experience even if we don’t know it.” ~Dave Waters.