Tuesday, April 03, 2007

Approaching High Noon for Monetary Capitalism Supply chains JIT

I introduced this diagram when looking at the attributes of Personalization and TIME in supply chains. We started a 9pm on the clock, with no supply chain, we consumed what we required in real time. Now we are at 12 noon, the successful conclusion of Monetary Capitalism. I am confident we are there, some take the view that it still has some way to go but I don't share this view, in fact, I feel the opposite, the end was reached a while a go (many years) and we are now bumping along the top.

In terms of supply chain management the economic model of the industrialisation era has brought us COMMODITY supply chains that are approaching real time. Real time in the sense that Just In Time techniques (JIT) have squeezed the natural realities of material good and service manufacture to their limit. Even if businesses reach this point this does not guarantee success or profits. It is probably more likely that a business reaching this point will be making losses, unless it has guessed what to make. As this is all happening really fast, so fast that years of profitable history and a balance sheet cash rich can be broken. This will become too risky for a business. They will seek a new model of stability. Future looking supply chains will be the path to pursue.

Originally uploaded by ecotorch.

No comments: