By Stephen DeAngelis
Today is National Supply Chain Day. During the Covid pandemic, everyone learned how disruptions to global supply chains could affect their daily lives. It’s a lesson they are relearning as global trade wars rage. In an article discussing the nature of supply chains, David Mindell, the Dibner Professor of the History of Engineering and Manufacturing at MIT, wrote, “The linear suggestion of ‘chain’ is misleading — a supply chain is a network or tree structure of suppliers supporting other suppliers, referred to in some industries as ‘tiers’.”[1]
As an example, Mindell looked to Intel’s supply chain. He observed, “The mines that supply tantalum ore to go into [Intel] chips are buried deep in Tier 12.” He went on to make an even broader point: As consumers, we are all part of the supply chain. He explained, “Consider any product in your home. Where was it made? (That should be written on the label somewhere.) Where were the parts made? Who put them all together? How did it get to your doorstep? Every object embodies answers to those questions, though it’s overwhelming to think about every one. Nonetheless, it’s a worthy exercise to do every once in a while for some objects, including your food.”
Rather than chains, tiers, or networks, I liken the supply chain to an ecosystem. An ecosystem is a community of interacting living organisms and their physical environment, where they interact with each other and their non-living surroundings. Mindell cites his MIT colleague and supply chain guru, Yossi Sheffi, who wrote in his book, The Magic Conveyor Belt, “Once one understands what is involved in just a single overseas shipment to a consumer’s home, the question is not why the item does not make it on time but rather astonishment and wonder that such a thing can be completed in the first place.” No business can exist without a supply chain (or the ecosystem that supports it). Another supply chain guru, Lora Cecere, founder of Supply Chain Insights, has for years insisted, “The supply chain IS business, not a department within a business.”[2] And it takes no stretch of the imagination to understand that we all are part of the global supply ecosystem.
Global Supply Ecosystems Are Us
As noted above, an ecosystem is a community of living organisms (i.e., humans, crops, and farm animals) and their physical environment (i.e., land, minerals, water, ships, aircraft, trains, trucks, warehouses, stores, etc.) that interact with each other. Modern global ecosystems also involve cyber services that support and connect modern digital supply chains. Mindell believes it’s important that all of us have some understanding of the connections we have with global ecosystems as well as the ethical implications that arise when we ignore the details. Or, as a Logility blog asks: “You want it, you need it, but how do you get it?”[3]
As an example, Mindell wonders if you think about the implications of throwing out a moldy strawberry. He writes, “Imagine the vast distances (and fossil fuels) that got it to your kitchen, only to miss being edible by a few hours. And, of course, the journey isn’t over when you throw it in your trash. Nor is it over if you eat it; your digestion is part of the chain. Your body turns the energy stored in the strawberry into work. Our act of consumption is just a brief moment in these ever-flowing systems. And yet that moment brings with it some level of ethical responsibility for the systems that support it. How much do you want to know about the working conditions at every stage of the supply chain? How much are you morally obligated to know, with what consequences? Few of us would likely condone every moment of every supply chain for every product we consume. Yet to fully ethically withdraw from that participation would involve a renunciation of modern life.”
Appreciation and Awareness
Staff members at Holiday Calendar write, “From the production and distribution of goods, to the delivery of food and essential items, supply chains play a vital role in keeping our society running smoothly. National Supply Chain Day is a great opportunity to recognize and appreciate the hard work of those who make it all possible.”[4] I couldn’t agree more; however, as Mindell pointed out, showing appreciation isn’t sufficient. We also need to be aware of abuses that take place within the global supply ecosystem and support efforts to eliminate those abuses. Back in 2023, Dean Alms, chief product officer at Aravo, reported, “Despite greater consumer awareness, regulatory response and corporate action to curb modern slavery, cases grew by 25% over the last five years. … Roughly 50 million people worldwide are caught in some form of modern slavery, with more than 52% in upper middle-income and high-income nations. Six G-20 nations, including the U.S., reportedly have the largest number of people living in slave-like conditions.”[5]
I agree with Mindell that we cannot afford to turn a blind eye to abuse in global supply ecosystems. While praising the hard work of supply chain professionals around the world, I also want to support efforts to eliminate abuses from global supply ecosystems. Since we are all members of those ecosystems, we all have a role to play in that effort. Alms explains, “Reducing, or eliminating, the risk of modern slavery has wide-ranging benefits for people and profits. Thus, procurement leaders should track their success as they deliver on performance metrics and impact the business — financially and non-financially.” Praising workers in global supply chains, Mindell concluded, “The goals of the thousands of people who plan, manage, and operate them, is the opposite of disruption. Keep the goods flowing. Keep the power on. Keep the trains running. Keep everyone safe while doing it. Smoothness, reliability, and efficiency are the watchwords.” In other words, keep up the good work.
Footnotes
[1] David A. Mindell, “Supply Chains Are Us,” The MIT Press Reader, February 2024.
[2] Lora Cecere, “Sage advice? Only for turkeys.” eft, 1 February 2013.
[3] Staff, “Traceability – You Want It, You Need It, But How Do You Get It?” Logility Blog, 31 August 2022.
[4] Staff, “National Supply Chain Day.”
[5] Dean Alms, “A Unified Approach to Combating Modern Slavery in Supply Chains,” SupplyChainBrain, 26 December 2023.
