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From Free Markets To Free Supply Chain Networks And Beyond

Supply Chain Networks


From Free Markets To Free Supply Chain Networks And Beyond

Supply Chain Networks Business

The story started in the 19th century with the beginning of free markets. The world of free markets is the world where business exchanges started to expand to global organizations and relationships. Many exchanges were now possible thanks to the free markets.

The allocation of resources is determined by supply and demand, as well as the prices. In fact, free markets involve free exchanges and free balance between supply and demand. In free markets, participants have a high level of freedom in their actions.

However, the degree of thinking is very low and there is no planning that could give some guidance to all these exchanges between many parties from the markets.

After that, organizations have tried to implement some rules to regulate the markets. Indeed, although free markets were efficient in the 19th century, regulation became necessary with the multiplication of the exchanges.

Therefore, societies started to go towards a new approach with regulated markets. These markets are similar to free markets: there are many exchanges between many different people and parties but rules were implemented to regulate them.

Some markets can be even more advanced than regulated ones: managed markets. In fact, management involves better regulation and efficient methods that enable a good functioning of global markets.

Organisations can go directly from regulated markets to managed markets, or they can also experience communistic markets or socialistic markets, which are very controlled but with a higher level of thinking and planning than regulated markets.

Managed markets, which follow these two models, are less controlled – but not totally free – and have a better level of thinking.

However, managed markets are still at the level of multiple exchanges between unrelated and random parties. The next stage is obviously about building your business network.

After managed markets, then, it comes to free networks. This approach can look like free markets but it is much better organized.

In fact, free networks involve partners available on the market and you have a choice between partners. Contracts and relationships are very free.

Once this approach is granted, you can start thinking about the next steps, which go through regulated networks and then managed networks. However, the crucial point is to outstrip the network stage.

In effect, at first we talked about markets, but the key step is to move to a network approach. To be able to do this, you and your team need to improve the degree of thinking and planning first.

The level of control is less important and it will determine the kind of relationship you have with your partners, but first you have to build your network.

With repeated interactions, you will make your outcomes far more superior than any other form of association. That is the reason why great business networks are the key to the success of your business.

Then, more regulation of the global business networks will be necessary to keep up the relationships with partners, and then the business will have to move towards a more managed network structure in the global economy.

Consequently, we have to admit that it is crucial to move from markets approach to networks approach. Then, we must think about regulation and management in order to gather all the conditions to build a great business network and sustainable relationships that will help us create more value.

Learn More Supply Chain Networks

Vivek Sood’s book, The 5-STAR Business Network (, will give you important guidelines to make this path from free markets to free networks.

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Today, Vivek and his partners are among 20-30 people on the planet earth who have this deep understanding of supply chain systems, practices and tools. CEOs, COOs, executives and Boards call them in most challenging situations once they know the full potential of supply chain based transformations. Following are key milestones in Vivek's journey:

  • Started in 1983 as a merchant navy cadet at 18 years age, worked his way to qualify as a Captain – qualified to take command of any merchant ship, worldwide.
  • Earned a top tier MBA from UNSW at the top of his class.
  • Joined highly regarded strategy consulting firm Booz Allen & Hamilton, consulting to the CEOs, Boards and senior management of global corporations within Australia.
  • To learn and specialise in supply chain – against all odds, sought out the co-inventor of supply chain in Germany and convinced him to be a partner in his firm, GLOBAL SUPPLY CHAIN GROUP, launched in January 2000.
  • More than 500 successful blue chip projects with high impact business transformations in large corporations using the full power of SUPPLY CHAIN MANAGEMENT.
  • 4 Seminal and path breaking business books IN SUPPLY CHAIN MANAGEMENT – these are available in bookstores and universities and libraries worldwide.

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Our Quick Notes On Five Flows Of Supply Chain Management




Our Clients say it better than we ever could:



Our Clients come from a variety of industries – yet they have a common element. They rarely rest on their laurels, and are always looking to do better.


In the last 20 years we have completed more than 500 projects. Click below to see a sample of our projects.



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If you are deeply passionate about the world of business and supply chain networks as I am, and enjoy digging answers to critical questions that will help build and steer your business with wisdom, then join me. This book is a journey of exploration through the world of business networks that run along the veins of today’s commercial world.



The trend of outsourcing continues to grow unabated with the whole gamut of services, from simple to mission-critical tasks. There is not a single company on earth that does not outsource anything. It is not just about cost arbitrage, it is also a finer expression of division of labour at the organisational level. Like all leverage, outsourcing is a double-edged sword too. On one hand, it allows you to do more, faster. On the other hand, if it goes bad, it can easily kill your business. If you do not believe that is possible – you can google the Fox Meyer saga from the 90s and see for yourself.



Businesses Are Chained By Unseen Chains. If You Are Looking For Ways To “Unchain Your Corporation” A Successful Business Transformation Is Required.

Successful Business Transformations Are Difficult, Yet Rewarding.

Business Transformation Is Fast Becoming A Question Of Survival In The Modern Globalised Era.

Modern Supply Chains Integrate Businesses And Economies Faster By Systematic Information Sharing From Internal And External Sources.

Companies Can Multiply Profits By Progressively Ramping Up Cohesion And Collaboration Of All Moving Parts In B2B Network To Achieve Tighter Integration.



It is generally accepted that environmental consciousness is now changing to environmental proactiveness as organizations are discovering that it makes good commercial sense.

Boards are asking the management to review their policies related to environmental norms, not only to bolster their corporate social responsibility aims, but also because consumers are asking for greener supply chains

It is also widely agreed that consumers will increasingly prefer to buy more and even pay more for products or services provided in an environmentally sound manner.



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