The Supply Chain Paradigm

Let’s explore an approach, which presents that supply chain is a concept that exists in many different aspects of business. The idea is to demonstrate that the notion of supply chain only applies to products or to specific industries is a misconception. We hope to explain the different paradigms when looking at “supply chain” going forward.

there seems to be a misconception when the words supply chain are used. To be clear supply chain does not apply to manufacturers, logistics and distributors of only physical products. I will demonstrate to you that supply chain is a process that applies to many areas of the business and many concepts within. Before we dig deep, let’s define “supply chain” in a way it ought to be. So, the following definition should be appropriate:

Supply chain is the cycle of information, product, process and knowledge. Its purpose is to deliver a product, service or information to the end-user.

If you are a seasoned supply chain professional, you would agree that the first thing we are taught in school and the best way to look at supply chain is always from the end-user and work backwards to the origin and its purpose.  The most conventional understanding of supply chain process and its application is mostly related to products and consumers. In doing so, we have the following steps that outline the standard SC process.

  1. Demand is identified or created for a product.
  2. The product is designed.
  3. Design in transferred to a product through the manufacturing process.
  4. Product is delivered to consumer thought distribution, logistics models.
  5. Product is consumed by consumers/users and creates more demand.

Now that we explored the standard SC process, let’s take a look at how it can be applied to the information flow process.

The information SC can be originating from any source in the organization and can be processed and routed to any person or department in the organization based on its intended purpose, use or demand. While some information can have a short life cycle, other information may have a longer life cycle; however, the fact remains that there are elements involved that qualify for supply chain process:

  1. There was a demand for information.
  2. There is a process by which the information was made available, either from a thought process or from an existing source.
  3. There was a transfer of the information, either physical or digital.
  4. There was a delivery of the information, email, text etc.
  5. There was someone at the end of the process, waiting to consume that information.

Following a few simple steps that are involved in the supply chain, we can argue that the supply chain process is applicable to many areas of business and personal life. We are living in supply chain models all around us in every aspect of our lives.