Global Supply Chain Ecosystems

The sheer scale and scope of modern-day global supply chains can be a sight to marvel at. It is something that (dependent on your age) our parents may not fully comprehend and it may confound our grandparents. Regular members of the public who don’t focus on how their latest tech toy gets into their hands or how fresh fruit arrives from the other side of the world to a supermarket probably underestimate the complexity behind their purchase.

So it was a pleasure to read this professionally orientated book that looks at global supply chain ecosystems. The author takes both industry newbie and more experienced participant on a fast-paced, informative tour of some of the latest trends and industry developments that are affecting this industry segment, looking at how they impact emerging, developing and developed markets alike.

Make no mistake, this is a specialist book but it is also something that a generalist or non-industry participant could get a lot of knowledge from. Managing the supply chain can require the skills of a chess grandmaster - looking at multi-dimensional views of your network whilst analysing contingency plans and looking for that competitive edge.

A global supply chain is not just for the big business players; its impacts can affect us all. Clearly there is greater global supply chain complexity for Apple to make a worldwide launch of its iPhone than someone buying a spare part from a Chinese e-retailer, yet that spare part will have been subjected to many supply chain issues before it was sold and certainly many more before it lands in your hand.

Some of the examples given by the author are stunning in their own right and should encourage anyone who can to look over their processes. Such as Australia’s largest department store managing (in 2010-11) saving 25 million dollars by transforming its supply chain. The company didn’t stop buying products; it just got them to its stores in a more streamlined, efficient and managed fashion. In other words 25 million dollars of “free money.” When the supply chain can be responsible for between 63-90 per cent of a company’s total spend (a survey noted) this is a great potential area to save on; even a few per cent of a lot of money is a lot of money.

But wait, there’s more. The author notes that savings in the supply chain also lead to further potential impact on the balance sheet as accounts receivable and cash assets will be bettered by order fill rates, invoice accuracy and lead times. Supply relationships, supply management and inventory policies will influence balance sheet inventory too. You may be running a tighter, faster and more reactive ship in the long run!

This book just keeps on giving and giving; you just need to sit down, focus and then seek to implement its advice. For not even the cost of one hour of a consultant’s time, you are getting a goldmine. Even if you believe you are your country’s supply chain guru, surely you will find a new perspective, a new tip, a new idea or something actionable from this book… and if you don’t? Well, it will confirm that you are perfection personified and right on top of your game, won’t it!

Global Supply Chain Ecosystems, written by Mark Millar and published by Kogan Page. ISBN 9780749471583. YYYYY