Why Are Modern Supply Chains So Needlessly Complex?
The complexity of modern supply chains are needlessly complex. Material is from all over the world, thousands of workers employed at many factories, and communication issues at every turn. Is there a way to greatly decrease complexity or is complexity just part of the supply chain?
Modern supply chains are often complex for a variety of reasons, including the increasing globalization of trade, the growing number of stakeholders involved in the supply chain, and the increasing complexity of products and services.
Here are a few specific factors that contribute to the complexity of modern supply chains:
- Globalization: Modern supply chains often span multiple countries and regions, as products and services are sourced from around the world. This can increase the complexity of the supply chain, as it involves managing relationships and coordinating activities with a wide range of stakeholders across different cultures and legal systems.
- Stakeholder diversity: Modern supply chains often involve a wide range of stakeholders, including suppliers, manufacturers, logistics providers, distributors, and customers. Managing these relationships and coordinating activities across different organizations can increase the complexity of the supply chain.
- Product and service complexity: Modern products and services are often highly complex, with many different components and features. This can increase the complexity of the supply chain, as it involves managing the sourcing, production, and distribution of these components and features.
- Increasing demand for customization: Consumers are increasingly demanding customized products and services, which can increase the complexity of the supply chain. For example, customized products may require special sourcing, production, and distribution processes, which can add complexity to the supply chain.
Overall, modern supply chains are often complex due to the increasing globalization of trade, the growing number of stakeholders involved in the supply chain, and the increasing complexity of products and services.
SCM Resources
- Container shipping documentary showing how containers revolutionized shipping.
- Finding Your Company’s Core Competencies
- Lean Manufacturing – Pull Systems
- Outsourcing Advantages and Disadvantages
- SCM Key Concepts
- Supply Chain Postponement Strategy
- Understanding Supply Networks as Complex Adaptive Systems
- What is SWOT? Definition and How to Do a SWOT Analysis
- Why Use an Agile Supply Chain Strategy?
Supply Chain Quotes
- “The best way to reduce your supply chain inventory is to sell it.” ~Dilbert
- “The thing is, continuity of strategic direction and continuous improvement in how you do things are absolutely consistent with each other. In fact, they’re mutually reinforcing.” ~Michael Porter
- “I think everybody would agree that now business has to take full responsibility for the impacts of your supply chain.“ ~Steve Howard
- “Products can be easily copied. But a supply chain can provide a true competitive advantage.” ~Yossi Sheffi
- “All we are doing is looking at the time line, from the moment the customer gives us an order to the point when we collect the cash. And we are reducing the time line by reducing the non-value adding wastes.” ~Taiichi Ohno, father of the Toyota Production System.
- “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.
- “Do not burden future generations with requirements for maintenance or vigilant administration of potential danger due to the careless creation of products, processes or standards.” ~William McDonough
- “An extraordinary life is all about daily, continuous improvements in the areas that matter most.” ~Robin Sharma