Reiterating the "Triple-A Supply chain"

Welcome back Readers I’m Sivakami - A final year MBA student from Amrita School Of Business majoring in Marketing and operations. I have found my space to explore on the various verticals in the area of  Logistics and supply chain and of course not limited to theories and  empirical studies 😅. So come lets discover on our never ending territory 😇 

Hey all! In the previous weeks or so, we have been conceptualizing how companies create supply chain that respond to abrupt changes. Leading companies focus on building and rebuilding supply chains to deliver goods and services to consumers as quickly and inexpensively as possible. Those firms invested in technologies, and when that proved to be inadequate, they either hired top-notch talent to boost supply chain performance or enhanced their technical support. Many companies also teamed up to streamline processes, lay down technical standards, and invest in infrastructure they could share.

Supply chain concept of Indonesians 

    This is enumerated in the indonesian food supply chain case thereby revisiting the supply chain competitiveness in Indonesian food industry. Tapping the concept from 4 different horizons cost, differentiation, sustainability, and infrastructure, the supply chain competitiveness can be measured. The research paper highlighted that cost and differentiation measure the performance perspective of supply chain competitiveness, sustainability measures the demand perspective of the future supply chain, and infrastructure - requirement perspective of supply chain competitiveness.

    The findings were complemented with empirical analysis Analytic Hierarchy Process (AHP) and Analytic Network Process (ANP) which revealed Infrastructure is the most important perspective that determines supply chain competitiveness and is a major constraint in Supply chain. Paradoxically, another HBR article revealed that companies whose supply chains were more efficient and cost-effective turned out to be under-performers in terms of gaining sustainable advantage over their rivals. In fact, the performance of those supply chains steadily deteriorated. It also highlighted the need for going beyond infrastructure.

Empowering 3 A's (Agility, Adaptability, Alignment)

    On the whole, the research papers striked my thought process had one thing in common, ‘ qualities for achieving supply chain competitiveness’. First,agility- supply chain which reacts speedily to sudden changes in demand or supply. Second, adapting over time as market structures and strategies evolve. Third, aligning the interests of all the firms in the supply network so that companies optimize the chain’s performance when they maximize their interests.

    So reflecting on what companies need beyond infrastructure now is that, a fresh attitude and a new culture to get their supply chains to deliver triple-A performance. Companies must give up the efficiency mind-set, which is counterproductive; be prepared to keep changing networks; and, instead of looking out for their interests alone, take responsibility for the entire chain. Oh yeah! This can be challenging for companies because there are no technologies that can do those things; only in the hands of managers!

Happy reading from Sivakami :)