Global Supply Chain Group

Menu
Edit

Open Secrets From Ancient Network Network

Share
Share
Share
Network Network

Share:

Open Secrets From Ancient Network Network

About 5-Star Business Network

Extract from the book “The 5-Star Business Network”, written by Vivek Sood

Global Supply Chain Group - we Post

“Plus ça change, plus c’est la même chose” Alphonse KARR, Les Guêpes 1849

Before we embark on the journey of exploration into the current realms of business networks, let us take a journey into the past.

A logical question always is whether all this is new or has this been done before. After all, as the quotation above says, the more things change the more they remain the same.

This is true of the business networks too. In a way, the networks we are talking about in this book are not new at all.

Some features, such as speed, trust building mechanisms, outcomes and science of network creation and harnessing are new.

However, similar networks have existed in formally or informally through the ages. And each time, they have been very effective in creating value for the participants, business community, and society in general.

In this chapter, let us briefly visit some of these networks through the centuries and see what we can learn from them. History is our best teacher.

At this point it is appropriate to note that we will keep these discussions of historical business networks brief, neutral and non-controversial.

The reason, besides efficiency, is that our objective is not a detailed study of characteristics, pros and cons, or even moral rectitude of the participants.

Rather, it is more mundane exercise in finding parallels with the current business networks and their key characteristics.

The silk route – a vast ancient business network

Are of 5-Star Business Network

Without going too far back into the antiquity, let us start our journey at the silk route of the Middle Ages. At its peak, the silk route extended nearly 4000 miles from the coast of China through the territories of China, Central Asia, India, Persia and Assyria to the Mediterranean coast of Levant and onwards by sea to the fabled city of Venice and beyond.

Global Supply Chain Group - zzst

The term silk road creates an image of a road, perhaps even a boulevard traversed by a camel train laden with expensive cargoes and well protected by security.

The truth is, however, is far more complex. In reality it was a complex network of caravans, camel trains, serais, traders, money lenders and ships extended across the known world of the time to carry merchandise as diverse as silk, spices, wool, fabrics, tea, porcelain, carpets, ivory and other such items of high value.

Each of the main cities in this network – Kashgar, Samarkand, Turfan, Baghdad, Tyre, Allepo or Alexandria – was a veritable hub of activities related to trade facilitation.

The participants in this network – whether a Sugd merchant, or a Chinese caravan owner, or a Florentine ship captain – were handsomely rewarded for their enterprise and ability to work their part in harnessing the power of the network.

Agrarian Society of 5-Star Business Network

Global Supply Chain Group - jyyust

Let us look at how the network was organised in practice. In the agrarian society of the Middle Ages, the most precious commodity traded by the business network was the spices.

Before the advent of refrigeration, spices were necessary to preserve food as well as mask the flavor of spoilt or rancid ingredient.

Many spices such as pepper, cloves, mace and cumin, ginger, nutmeg, cinnamon and saffron traded for margins up to 3000 percent and some of these were regularly sold for prices more than their weight in gold.

With such high margins, demand was never a constraint, the extent and security of the supply route was.

It was usual for the goods to change ownership more than 25 times between the producers in the east and the eventual consumer in the west.

Each middleman added his own margin as well as embellishment to the story.

For example, Arab merchants told their European buyers that the cloves were netted out of river Nile and cinnamon came from the birds.

Without any central command, the entire network was organized towards one end – production, collection and transportation of the spices and similar produce to the destinations in Europe.

Numerous middlemen – camel caravan owners, merchants, ship owners, and financiers participated in this chain – each within their own territory and with their own margin.

It is estimated that the middlemen’s share of the profit in this enterprise was more than 90 percent

Learn More 5-Star Business Network

Read more on The 5-Star Business Network

Share Generously :

LinkedIn
Twitter
Facebook
WhatsApp

Copyright - These concepts, frameworks and ideas are copyright of GLOBAL SUPPLY CHAIN GROUP from the time of their creation. Do NOT copy these without permission and proper attribution.

Notes:

1. These ideas and concepts will be usually expressed by our thought leaders in multiple forums - conferences, speeches, books, reports, workshops, webinars, videos and training. You may have heard us say the same thing before.

2. The date shown above the article refers to the day when this article was updated. This blog post or article may have been written anytime prior to that date.

3. All anecdotes are based on true stories to highlight the key points of the article - some details are changed to protect identification of the parties involved.

4. You are encouraged to comment below - your real identity and email will not be revealed when your comment is displayed. Insightful comments will be featured, and will win a copy of one of our books. Please keep the comments relevant, decorous and respectful of everyone. All comments represent opinions of the commentators.

Our Quick Notes On Five Flows Of Supply Chain Management

Part of our new “Quick Notes” series – this report answers your most pertinent questions of the topic.

LIMITED TIME
USD 20
FREE

. What are the five flows of SCM?

. Why are they important TO YOU?

. How can you map, track, and optimise these flows to serve YOU?

. What is the importance of difference between "Supply Chain" and "Value Chain"?

. What are the stellar case studies of each of the five flows?

MORE INTERESTING READING

Leave a Comment

Your email address will not be published.

Table of Contents

ABOUT THE PRINCIPAL AUTHOR

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.

Limited Time

FREE

This offer expires in

Our Quick Notes On Five Flows Of Supply Chain Management

US$20

USE CODE "FREETODAY"

WHAT OTHERS ARE SAYING

Our Clients say it better than we ever could:

TRENDING POSTS

OUR CLIENTS

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.

OUR PROJECTS - EFFECTIVE TRANSFORMATIONS

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

OUR TESTIMONIALS

RELATED POSTS

Our Books

5.0
5/5

THE 5-STAR BUSINESS NETWORK

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.

4.3
4.3/5

OUTPERFORM OUTSOURCE OUTPROFIT

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.

4.3
4.3/5

UNCHAIN YOUR CORPORATION

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.

4.3
4.3/5

GREEN SUPPLY CHAIN – AN ACTION MANIFESTO

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.

FOR SENIOR EXECUTIVES AND DIRECTORS

YOUR HIGHEST VALUE ADDED IN YOUR COMPANY

Scroll to Top