SUPPLY CHAIN
CHAINS TO NETWORKS
MARKS THE CHANGING SHAPE OF SUPPLY
The post-pandemic world has changed the nature of supply chains , and geo-economic factors are changing its shape , say Glenn A Steinberg of EY and UST ’ s Jonathan Colehower
WRITTEN BY : SEAN ASHCROFT
When back in the early 1980s , German physicist and business analyst Wolfgang Partsch first coined the term ‘ supply chain ’, no one could have imagined how the world might look in 2023 .
The pandemic changed the nature of the global supply-and-demand economy , while geopolitical instability – Ukraine & Russia and China & the US – has changed its shape .
The challenge for today ’ s businesses is moving from the concept of a linear chain to the dynamic configuration of a network of companies and locations .
Some refer to this as networked supply , others call it the ‘ demand response network ’. But whatever term one applies , the reality is that supply chains are tech driven and comprise smart suppliers , plants and transportation companies , coupled with intelligent locations for placing products .
“ Supply chain reinvention is in vogue ” says Glenn A . Steinberg , EY Global Supply Chain Leader . The multiplicity of demands facing CSCOs is incredible . It used to be enough just to balance cost , service , quality and speed but now you need to add resilience and sustainability into your supply chain .”
Sustainability , visibility and resilience are coming to define the new standard for supply chain excellence in a world where , Steinberg says , “ something broader is at play ”.
“ The world order is changing from a unipolar economic order to a multipolar one ,” Steinberg continues . “ This has a tremendous impact on the strategic
36 October 2023