Efficiency vs Effectiveness

One of the principal issues we are seeing as we wrestle with the challenges of BREXIT is disruption to complex supply chains. Complex supply chains are largely driven by the search for efficiency, efficient allocation of resources and just in time production.

Which is great, right up until the point it isn’t. Whether it’s a natural disaster, or a man made one, increasing complexity makes disruption to efficiency ever more likely.

Roger Martin, in this months HBR  writes an excellent article on this, covering not only supply chain disruption, but other downstream consequences of concentrated production.

This is an interesting opportunity for well run smaller businesses with integrated supply chains and close relationships with suppliers and customers. Disruption creates gaps as larger business take time to re-organise and respond.

Gaps are there to be filled.

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