Are You a Supply Chain Boiled Frog? There are a Lot of Them Out There!

Have you heard the story of the frog and the pot of boiling water? It is a metaphor entitled the “Boiled Frog Syndrome” and describes reactivity, or the lack thereof, in the face of dangerous situations.

Supply Chain is at a moment of truth, an inflection point at which we will either progress into the future or be stuck in the past. Unfortunately this is entirely analogous to the Boiled Frog syndrome.

There are far too many Supply Chain Boiled Frogs out there. Are you a Supply Chain boiled frog?

The Boiled Frog Syndrome Explained

The boiled frog story is pretty simply explained.

If you put a frog into a pot of cold water on a stove, and then slowly turned up the heat, the frog would stay in the water. Eventually the water would reach the boiling point but the frog would remain in the water and would itself be boiled and die.

Alternatively, if you already had a pot of boiling water on a stove and then dropped a frog into the boiling pot, the frog would immediately jump out and save itself.

The frog would stayed in the pot as it progressively got hotter and boiled, ignored the signs of danger and remained in its current situation until it was too late. The frog dropped into an already boiling pot immediately recognized the danger and acted to remove itself from the dangerous and life threatening situation.

This metaphor applies to Supply Chain. And the recent global Coronavirus pandemic is the proof. Most disasters and catastrophes prior to pandemic would have been localized based on specific companies, specific geographies, or specific industries. But the pandemic was global in every sense of the word, disrespectful of boundaries of any kind. Everyone was affected.

The pandemic was like the boiling pot of water. Every Supply Chain up to that point experienced disasters of some kind. They may have been small or large, but they were indicators that problems had occurred and would recur.

Smart Supply Chain leaders had taken steps over time to improve the robustness and resiliency of their operations, making them less vulnerable to future problems. In short, these steps made Supply Chain leaders more aware, and more able to quickly respond, to boiling water if and when it occurred.

Complacent Supply Chain leaders did not take steps to improve their operations. They trudged along, fighting fires day to day, but never taking the proactive steps necessary to improve their responsiveness when the next disaster would inevitably strike. These organizations were the frogs continuing to sit in ever hotter water, inevitably succumbing to their death.

In many cases the pandemic resulted in either irreparable harm to many businesses, if not the outright failure and demise of these organizations. Given that Supply Chain performance was a determining factor, it is fair to consider those failed companies as boiled frogs.

Our current concern is that far too many companies did not learn the lessons of the pandemic and as such they remain in those pots of water as they are oblivious to the fact that the water is still getting hotter and hotter and hotter and hotter.

Recent Supply Chain Signs

I was asked earlier this year to give a presentation on the future of Supply Chain. The period we are now in is what I call the Supply Chain Renaissance, with its backbone and foundation being the Digital Supply Chain.

Also on the agenda were a speaker from a Supply Chain consultancy and another speaker from a Logistics company. The consultant talked about a lot of the project they were working on for various companies. All of the projects and all of the consultancy provided was very tactical; small to mid sized projects designed to fix immediate issues, reduce costs, or increase productivity. But it was all tactical.

The Logistics expert talked more about their company, and what they were doing to help customers. Similarly the message seemed to be focussed on short-mid term improvements. Nothing really strategic.

I was last on the agenda, talking about Supply Chain’s Moment of Truth, the Digital Supply Chain, and the distant future which constitutes the Supply Chain Renaissance. My talk was more far reaching, and I like to think more visionary. For those in the audience who were more comfortable with the present, tactical and tangible activities, the consultant probably gave them more of what they could understand.

But therein lies the problem. And this is what shocked me about the consultant specifically. The consultant was perpetuating their clients tactical focus on the day to day issues, with virtually no focus on long term strategic planning to create a new future reality. In effect the consultant was the one slowly turning up the heat on the stove while their client slowly and blindly were boiling away.

Other activities and interactions have reinforced this concern in my mind. Far too many people and companies have quickly forgotten the experiences of the pandemic and have just gone back to their old way of doing things, making incremental improvements at best. And they have convinced themselves that this is ok.

Everyone taking this approach will continue to boil. Are you a Supply Chain boiled frog?

The Dangers for Supply Chain

There is nothing wrong with making tactical improvements to improve your operations. The problem is that when these are done in isolation, with no focus on more game changing strategic activities, the water continues to heat up to boiling.

Truly robust and resilient Supply Chains require significant investment, a digital investment. The Digital Supply Chain is the future. It is inevitable. The world is, and will continue to go, digital. Supply Chain is no exception.

But creating a Digital Supply Chain starts with the vision and leadership. If you don’t have this vision or strong, courageous leadership, your boiling days have already begun.

Being boiled manifests itself in many forms. Your company can not meet customer demands, you run out of cash, you fail to secure continuity of supply, you cannot attract or retain talent, you spend all of your time fighting fires, your competition beats you to and in the market, and in the extreme your company goes bankrupt and shuts down.

Unfortunately this is the path that far too many continue to go along.

It’s Time to Get Out of the Boiling Water

Intelligence, informed, and spatially aware professionals recognize this scenario. Similarly people new to Supply Chain, inclusive of many students and other new entrants, recognize this problem. These are the people who are dropped into the already boiling pot and immediately jump out, recognizing that the current situation is problematic and that there must be a different way of getting things done.

Students are full of energy and knowledge and do not have any of the baggage or jaded paradigms that more seasoned professionals may have. They recognize that there must be a better way of doing things.

Entrepreneurs and brave, ambitious leaders also see the possibilities of a new and improved future. They are the one who realize that the old ways of doing things will not suffice, and they must reinvent the future.

Conclusion

My concern for the future is real. Far too many people have reverted to their old way of doing things, just as it was before the pandemic. Minor, tactical improvements prevail. Change is stalled due to this complacency and inertia. These people are boiling whether they know it or not.

My excitement about the possibilities for the future is also very real. Never in the history of Supply Chain have the conditions and catalysts for long term change been so tangible. We are at the beginning of a Supply Chain Renaissance that will last for decades to come.

An unprecedented suite of advanced technologies, general societal knowledge of and interest in the need to improve Supply Chains, greater education and awareness than ever before, and leadership and organizational resolve to create more robustness and resilience all combine to set the stage to create the Digital Supply Chain of the future.

These are the people dropped into the boiling water who recognize the danger, jump out, and understand the need to create a new future outcome. These are the survivors and the thrivers.

So where are you and your organization? Are you a Supply Chain boiled frog or are you a Supply Chain Game Changer?

Supply Chain Boiled Frog article originally published on July 4, 2023.

Cover image by Three-shots from Pixabay

The Importance of a Strong Supply Chain and Logistics Strategy!

A solid supply chain and logistics strategy is essential for large companies.

A global chemical manufacturer recently had to replace ships that transported bulk materials to ports. These materials were then transferred to barges and rail cars for delivery, and finally to terminals where they were packaged into shipping containers for final delivery by rail. This chemical manufacturer is converting its entire distribution system to containers.

Using a logistics-oriented strategy helps companies better understand their suppliers, improve customer service, and optimize shipping.

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Our 2022 Top 10 Articles Plus One!

It has been another exciting year for sure, with supply disruptions and issues continuing to keep Supply Chain in the headlines, impacting every aspect of our lives.

The year is also marked by the end of the global Coronavirus pandemic and its restrictions, which has caused us to add content about what the future of Supply Chain could, or really should, become. As we state, “Supply Chain’s Moment of Truth Has Arrived!

Make sure you read our 2022 Top 10 articles, along with a bonus article, which are amongst our best ever!

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Channel Partnering: Strategies for Business Growth and Success!

Channel Partnering is a strategic business approach that involves two or more companies working together to create a mutually beneficial relationship. It has become an increasingly popular option in recent years for companies looking to expand their reach, increase market share, and streamline operations while cutting costs.

In this article, we will explore the definition of channel partnering, its benefits, challenges, types of partnerships, and best practices for successful implementation.

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Building the Future: Navigating the Evolving Landscape of the Construction Industry!

The construction industry, often regarded as the backbone of infrastructure development, plays a pivotal role in shaping our world. As we move into an era marked by technological advancements, sustainability goals, and changing global dynamics, the construction sector finds itself at the crossroads of innovation and tradition.

So let’s explore the construction industry’s current state, its challenges, and the exciting transformations shaping its future.

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The Single Point of Failure in Supply Chain – The Suez Crisis!

In March of 2021 the world was astonished when a large cargo ship, the Ever Given, became stuck in the Suez Canal. Virtually everyone is oblivious to the movement of any single cargo ship around the world. However very quickly the colossal ramifications, including to investors, of this singular event became known to all.

The blockage of the Suez Canal by this one ship immediately impacted global Supply Chains. Over $9 billion per day (12% of global trade) moves through the 120 mile canal.

While the ship was freed after about a week, in the intervening time ships were debating whether to take the longer trip around the Cape of Good Hope in Africa or wait for the salvage operation. It all underscored the vulnerability of having a single point of failure in any Supply Chain.

Do you have a single point of failure in your Supply Chain?

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The Call To Action … Where It All Begins!

“The Board is REALLY upset.  They want a plan to dramatically improve our Supply Chain inventory turnover performance and they want it now.  Will you lead this for me?”  That was a call to action.

My boss had just got out of the Board meeting and these were his words to me.  The company had historically performed very poorly in managing inventory.  And it was not only consuming a lot of cash but it was impacting our profitability with the high carrying charges and write-offs.  Also it impacted  our competitive position as customers and competitors didn’t believe we knew how to manage inventory, and Supply Chain, very well.

This was a Call To Action!

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10 Vital Supply Chain Lessons from the Coronavirus Pandemic!

The Coronavirus pandemic has taken the world by storm. With accelerating rates of virus transmission and deaths the global response for containment has increased as well. We need to learn Supply Chain lessons from this tragedy.

Every aspect of our lives has been disrupted: our health, freedom of movement, employment, the economy, our ability to buy goods, and virtually every Supply Chain.

We started to hear about shortages of toilet paper, hand sanitizer, foods and household goods. Now we are starting to hear about shortages of ventilators, masks, and medical equipment.

The list of shortages will only increase at this stage. Apart from the panic buying are there Supply Chain lessons that we should learn from the Coronavirus pandemic to improve the robustness of Supply Chains in the future?

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How Does Supply Chain Impact Sales and Marketing?

The supply chain’s touch points are the unseen threads that weave through the fabric of a transaction, connecting promises made in a glossy brochure to the tangible delivery of products.

Yet, despite this crucial role, the supply chain often operates in the shadows of customer-centric conversations. This oversight can lead to missed opportunities for synergy and collaboration.

Herein lies the power of sales funnels—a strategic framework that extends beyond the realm of sales and marketing to encompass the entire customer journey, including the often-neglected supply chain touch points.

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Our 2022 Top 10 Articles (Part 2)

As 2022 draws to a close it is interesting to reflect on the fact that while many of the restrictions put in place during the pandemic are no longer in place, the Supply Chain disruptions caused by the pandemic continue to persist.

These continued disruptions reinforce our belief that Supply Chains continue to be structurally weak. They fall far from the ideal of having much more robust and resilient Supply Chains.

On that note it is important to take the time to reflect on our top 10 articles for the second half of 2022.

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Breaking Barriers: Overcoming Challenges in the World of IT Startups!

IT startups are a vibrant and dynamic sector with a mission for innovation, disruption and progress. Despite this challenging environment, there are inevitable obstacles that startups struggle to overcome on their journey to success.

This article covers the common hurdles and the solutions that are used to conquer them.

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5 Things Startups Must Know Before Launching a Minimum Viable Product (MVP)!

Let’s be honest – the modern business climate could not be imagined without startups, but how many of them actually succeed? 11 out of 12 new businesses fail, and that is sad. The more important question is why some of them actually succeed and what is a minimum viable product?

Today we will try to answer these questions by going through the steps necessary for a startup in order to build a solid foundation for their product and avoid the game-ending errors.

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Trading Globally, Investing Abroad, Foreign Exchange Markets and Trade Agreements!

With the global pandemic in 2020, global trade took a large hit with trades being hindered and the economy taking a large downfall.  However, in 2021, global trade increased and actually started to surpass pre-pandemic stats.  

The article, “Global trade hits record high of $28.5 trillion in 2021, but likely to be subdued in 2022” by UNCTAD explains that, “Overall, the value of global trade reached a record level of $28.5 trillion in 2021”.

That’s an increase of 25% on 2020 and 13% higher compared to 2019, before the COVID-19 pandemic struck.

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Tips to Get the Best Performance From Your Business!

With another year fast approaching, it is time to get planning your next step to take your business further, improve its performance and have its best performance and best profit-building year yet.

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How to Prepare Your Business for Expansion!

Every business strives for expansion. In a growth-forward economy, business expansion is more than just an opportunity to grow profits; it is also crucial for business survival. This has been proven particularly true by the inflation crisis and ensuing recession, as spending plummets alongside spending power.

But expansion is not quite as simple as recruiting more, or opening a new physical location. Even these simple options have their own considerations attached. What follow are some of the most important questions you should be asking with regard to your business’ expansion – along with some of the better ways to secure a successful expansion strategy.

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