Six Lessons In Supply Chain Strategy From Genghis Khan

Supply chain strategy can be a squishy topic. Basically, we try to keep costs down and service up, but what does this really say about how to win in a competitive business? Working harder at the same things is not a sustainable strategic advantage.

True strategy means finding ways to use and combine tactics and resources to achieve a goal in conditions of uncertainty. For supply chain leaders, it demands thinking laterally about everything that happens from the customer back and then placing bets to gain an operational edge.

In addition to modern thinkers like Peter Drucker and Michael Porter, some of the best lessons on this topic come directly from the playbook of Genghis Khan, the 13th century Mongol who conquered nearly all of Eurasia.

Here are six that apply today.

1. Use the skills of others.

The Mongols made no products, farmed no crops, and built no buildings, but still saw the value of engineers, miners, doctors and scholars.

2. Communication is essential to power.

Having armies spread over thousands of miles led Genghis Khan to establish a sort of Pony Express that was designed and maintained centrally.

3. Embrace technology.

In the year 1206, when Genghis Khan was born, his tribe had no metal and lived in felt tents. Fifty years later, they had mastered siege technologies like catapults and trebuchets as well as early firearms and cannon.

4. Never stop learning.

Genghis Khan’s genius was not the result of some epiphany but came rather, in the words of biographer Jack Weatherford, “from a persistent cycle of pragmatic learning, experimental adaptation, and constant revision”.

5. Cherish diversity.

A typically among history’s great empires, the Mongols allowed complete religious freedom and employed almost all of their conquered peoples’ best minds in the imperial administration.

6. Swallow your pride.

Genghis Khan cared nothing for appearances and would often feign retreat to draw enemies onto more favourable ground.

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Did any of those lessons attract your attention? What do you think? Share your opinions with us in the comment box, and subscribe to get updates in your inbox.

Preventing a talent gap in supply chain management

When you hear about skills shortages and talent gaps, the discussion tends to surround STEM — science, technology, engineering and mathematics — professions. However, a new concern also is breaking through.

Supply chain management has become a far more complex and skill-demanding ordeal for businesses in a wealth of industries operating in virtually every location around the globe. This has been driven by the fact that commodities markets, global trade and regional economic conditions have been volatile at best, and show no signs of simplifying or stabilizing anytime soon, meaning that managers of the supply chain have a lot more variables to worry about today than in the past.

Thankfully, it appears as though many businesses, including those operating within the manufacturing sector, are working to nip this problem in the bud by providing their own types of training for supply chain managers to digest. After all, the greatest weapon in the fight against any talent gap is increased investment from the private sector in training and development, and this medicine appears to be more commonly embraced in the modern era.

Automotive excellence
Manufacturing Business Technology magazine recently reported that a new study from DHL revealed automotive giants are likely to face what it calls a “perfect storm” that will wreak havoc on supply chains from around the globe. According to the study, supply chain management professionals, specifically those looking to get a job at an automotive manufacturing firm, already are few and far between, and this problem is expected to become more complex in the near future.

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How do you deal with the talent gap in supply chain management? Share your thoughts with us in the comment box.