The Big Picture

The old models ...

Companies used to be viewed as separate units, and models were designed to solve only problems within the company.

... and the new supply chains ...

Today, companies connect into networks or chains, increasing the flow rate throughout the supply chain to satisfy an ever more demanding customer.

A company that exchanges its old way of working for the new chain model can cut its throughput times considerably and create a "win-win situation" where everyone gets a share of drastical cost reductions while the customer gets better service and lower prices. In the long run, this leads to increased sales.

... don't work well together.

But the traditional methods still aim to create advantages for one particular company at the expense of all the others in the chain. Those who "obey" the old models will therefore automatically defend their own interests. By doing this they hurt the other parts of the chain, and the chain weakens. In the end, this backfires on themselves.

A new way of thinking

The ability to collect and process information in real time has created possibilities for completely new ways of working, adapted to the idea of a supply chain and with routines that make the chain considerably more efficient.