Professional Documents
Culture Documents
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Managing Supply Chain Complexity in an
Age of Uncertainty
2
Enter ‘Supply-Chain Management’
3
The World in 1982
Michael Jackson
The Commodore releases Thriller
64 8-bit personal – the biggest
computer is selling album of
launched all time
The first
compact discs
Yuri Andropov appear
replaces
Leonid
Brezhnev
as head of Epcot
Soviet Union Centre
opens in
Florida
4
Volatility Index
5
Increasing Supply/Demand Uncertainty
Hi
Supply
Uncertainty
Lo
.
Lo Hi
Demand
Uncertainty
6
Conventional supply chain design
7
The Supply Chain’s Centre of Gravity is Shifting
• Materials and
resource • Disposable Income
Centre
availability of
Gravity • Changing consumer
preferences
• Skills
• Industry
• Transport Costs development
8
Complexity impedes agility
9
Complexity in the global supply chain : the Boeing 787
10
Seven types of supply chain complexity
12
Structural vs Dynamic Flexibility
13
Moving from dynamic to structural flexibility
Structural
Flexibility
Low High
High
Efficient Adaptable
Supply Supply
Chain Chain
Dynamic
Flexibility
Traditional
Supply
Chain
Low
14
Gaining structural flexibility
15
Changing business models
16