Sometimes a picture is worth a thousand words. A map of our globe enables us to reflect upon key issues in SCM: Who is actually producing our computers? Where does value creation take place? What are the core competencies of the brand company? Who is governing the computer supply chain? What is the role of contract manufacturers? Why is final assembly being done in China and not in the EU or Canada? Why is packaging being done in Eastern Europe or Mexico and not in China; and why not in Northern Europe or Canada, where the consumers are located? What modes of transport should be used? How long does it take to move a container from Hong Kong to Hamburg? What is the size of a container? What are typical container shipping rates? What can be problematic about sourcing raw materials from the Congo? How would you calculate the CO2 emissions of a computer? How could a linear supply chain become circular? What role will machine learning play? How will the supply chain change in the age of automation? What is the potential role of 3D printing? Is a “supply” chain about “supply” or is “demand” actually the factor that we should be looking? Is a supply “chain” actually a “chain”?
The United Kingdom has been one of the key links in EU supply chains for more than 40 years. BBC Newsnight has recently reported on how Brexit could break that chain and what the consequences could be for manufacturers. I like the video and have used it for my Supply Chain Risk Management course to discuss this topic with my students.
New research published in Science (Poore & Nemecek, 2018) analyzes land use in food supply chains. An astounding 3.1 billion ha reduction in land use could be possible by excluding animal products from current diets. That is an area equivalent to Australia + China + European Union + United States. The author also shows that animal products use about 83% of the world’s farmland and contribute about 57% of food’s different emissions, despite providing only 18% of our calories. These findings demonstrate that we need to shift from “company thinking” to “supply chain thinking” if we want to see the full picture.