Nov

18

This article makes a seemingly profound point. Is this a fundamental shift due to better supply chains or just a temporary but completely natural result of a decade-long liquidity glut that will resolve itself by predictable supply destruction?

…over the last decade, the global economy has experienced a fundamental and historic shift from centuries during which supply and demand were roughly balanced, to our current situation in which supply significantly outstrips the demand available to absorb it. This is largely the result of the relatively new science of Supply Chain Management, which systematized the process of marshaling resources to bring products and services to market. The implication is that most modern business strategies are now obsolete, as the new competitive battlefield has now shifted from supply to that of finding remaining pools of profitable demand. That alone is enough to provoke a radical change in how businesses are organized and how they behave. It suggests that most companies, including the most successful, no longer have a lock on survival because the ground has suddenly shifted beneath their feet. That, of course, is the recipe for a…


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