Are Multiple Supply Chains Important (Survey Response 1)

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Is supplier incumbency a major problem with government contracting? - By Jon Hansen

Chetan, Entrepreneur, India

That hardly sounds like a recommended approach at an organization level. One has to take a holistic view and optimize at the global level rather than take view about efficiencies at each individual unit. The reason being that there is no guarantee of all individually efficient supply-chains adding up to a global optimal at the organization level. So, when one is not efficient/optimal at the global level, there is no way one can be market leader etc. This search for the globally optimal situation has to be a concious process.

My Response:

What is interesting is that this "assessment" appeared in a report that was written by the Institute of Supply Management (ISM), CAPS and AT Kearney last year. Much like you, I shared similar reservations that were outlined in part 3 of of my 7 part series Dangerous Supply Chain Myths.

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Is supplier incumbency a major problem with government contracting? - By Jon Hansen

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