All posts by Supply Chain Expert

In this episode Tony Hines discusses recent changes in the macro environment as well as in society at large and the risk and uncertainty that plays out in the supply chain. Complexity and Disruption provide a focus for the discussion. Supply chains are discussed as complex systems. Disruptions emerge as the complexity of the system increases. Visibility is key to understanding the changes and the risks involved. Recent changes in the global economy give rise to further complexities and key trends are identified.

Tony Hines developed his 7V model to identify value drivers in supply chains. These Vs were validated in his research studies of international supply chains. Value is created within the supply chain by lowering cost and increasing value for customers. This often results in saving time and speeding up throughput. If Supply Chain cycle times can be reduced you lower cost and people get paid faster. Each of the V’s has a unique role to perform. The 7V’s comprise: Volume, volatility, velocity, variety, variability, virtuality and visibility. Each is explained briefly in the podcast.

There are two ways to create supply chain advantage: reducing cost or increasing profit. There is one method – customer focused supply chain strategy.