Supply chains are back in the news. Not because they’re broken but because they’re apparently all fixed, according to members of the press. Even the White House is celebrating the return to normalcy across supply chains globally.
Is that true? Are supply chains back to normal? No. How do I know I’m right? Because there’s no such thing as a normal supply chain. In fact, as I’ve stated over the years that there’s no such thing as a supply chain.
Business isn’t linear. Companies sell their products to customers globally. The process of manufacturing, transporting and fulfillment requires interactions among millions of people, suppliers, logistics provides, carriers and retailers – the process isn’t linear. The processes are not linked together like a chain. Therefore, there is no such thing as supply chains.
I’ve stated over the years that the best term to describe what happens in business is supply web. Companies with global business and logistics needs are best compared to Darwin Bark spiders that spin the largest webs in the world. Fact: Regardless of how big the web is, it’s connected. It is one gigantic web that can cover acres of ground.
I used the example of a Darwin bark spider to describe Amazon this way:
“Amazon’s business isn’t linked like a chain. It is in fact more similar to the web of a Darwin bark spider that makes the largest spider web in the world. The beauty of webs is that they allow a spider to catch prey without having to expend energy and run it down. Amazon is creating a nationwide and eventually a global ecosystem that in fact will operate similar to a web to grow the company. However, Amazon’s strategy isn’t to run down the competition, it’s to attract more prey – customers – in its web.”
It’s also nearly impossible for a company to manage their supply chains. Why? Because companies operate in silos often using different software they either purchased or built. This means their supply chain is siloed with no end-to-end software capable of managing every aspect of the supply chain. Silos are barriers to efficiency.
This is why the only supply chain software I recommend is from Solvoyo due to their industry-leading end-to-end planning, analytics and execution capabilities. They break down silos.
The transformation from fragmented silos to a unified approach across business functions, spanning from demand to delivery, is crucial. This integrated approach establishes a single source of truth, encompassing network-wide constraints, parameters, and balanced metrics, leading to optimized operations across the entire supply network.
Embracing end-to-end strategies within the supply web empowers organizations to confidently drive growth while achieving exceptional efficiencies and sustainable practices. Solvoyo’s expertise lies in delivering these capabilities, allowing businesses to unlock their full supply chain potential.