My recent insight on Sustainable Supply Chain Management System design … Lossy vs efficient organizations – how to design a ‘sustainable’ supply chain management (scm) system
sustainability in supply chain management is optimized by measuring the lossiness cause by reflective coefficients at the sources and sinks of each learning node (suppler/vendor) in the chain. This refers to both informational and material flows. Thus, when the reflective coefficients are high, much loss occurs in the transfer of energy (product/services) process.
This generates a highly inefficient system and utilizes more resources, times, and people – thereby money; than a system that has been optimized at each supplier connection point with the goal of minimizing resistance and maximizing flux of information. The higher the flux (meaning bidirectional flow of information so that it is received and absorbed or assimilated), the lower the cost factors in product/service creation, is involved.
In a closed loop supply chain system (for example see the metabolic closed loop system diagram) each point of technology/materials transfer become an increasing way to build sustainability into the supply chain. this generates, not only a cleaner product generator through the network (chain), it also non-linearly reduces the costs involved – after an initial startup cost factor to break through the existing system’s resistance (otherwise known as momentum).
By defining reflective coefficient models as result of source/sink information and materials flow ratios, the evolution of a supply chain can be monitored, measured, and melded into an optimized performance system that directly affects world sustainability.
Sustainable Supply Chain Management System
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comments from drew: drew goodwin: just read your piece….. good stuff overall….. devil in the details….. precisely what has to be measured? and how ? ….. cool thing is that if you can figure out a way to measure “inefficiency ” then you have a metric that can be monitored for improvement over time….. providing a benchmark to substantiate claims of gain/loss…. also, would be nice to specify and quantify those data (the “flux”) that are necessary and sufficient for efficient supply chain management……