The Newest Supply Chain Model

Newest Supply Chain Model


The Newest Supply Chain Model

The History of Newest Supply Chain Model

In the traditional business world, relations between organisations were different from what they are today. Collaboration between organisations – if there was collaboration – used to follow a linear model.

In fact, when several organisations had to collaborate, they used to do it through a very linear model, with traditional supplier-buyer relationships.

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This model is based on rigid hierarchical structure between the different actors. Although it could work in the old business world, it is a little more complicated today.

However, the problem is that many organisations have not evolved according to the new globalised business world, and they are still using the traditional model. The key word for today’s business world is “network”.

In fact, no business can be successful if “network” is not the basis of its logic. You can learn more about the importance of global business networks in Vivek Sood’s book, The 5-STAR Business Network ( Any decision and project must be based on the network today. 

Therefore, companies first have to build an efficient global business network, which will be the basis of its supply chain and its entire organisation structure.

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Thus, this is the first step for any single organisation. Besides, businesses do not act alone today: network involves multiple relationships and interactions between businesses.

That is the reason why your supply network must be very flexible; it is because interactions are infinite.

Therefore, when interacting together, in a business network, organisations have to do it in harmony, and with flexibility in their structure.

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The production teams and the procurement teams work together, to provide the best product to the customer.

Collaboration is necessary in the relationship among the supply chain partners to create, market and sell the products. Likewise, collaboration is also required to make the products, move and store them.

In other words, we have no choice but to admit that collaboration is necessary to build a great supply network and manage efficiently our supply chains.

In effect, in today’s globalised world, collaboration is necessary during the entire process, so your supply chain can give the best results.

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Besides, your customer will be satisfied because of the efficiency of your supply chain, which will produce in the shortest period at the lowest cost.

Then, your customer will have a good product, in a short delay, and at a reasonable price. That is the reason why you do not have other choice if you want to beat your competitors in the market place.

Besides, your business network would be so big and efficient that your business will benefit from their know-how and knowledge.

Therefore, you can also expect innovations. You will benefit from your partners’ innovation, which will help you create even more value than with your own innovation.

Consequently, the power of modern supply chain models lies in collaboration and interaction.

In effect, modern organisations cannot keep following the traditional linear model because there are many more businesses involved in a business network today than 20 years ago, for example.

To summarise, let us say that today, supply chains involve many actors, which means that businesses must collaborate in a very flexible way,

In order to get the best from each partner and provide the best product for the customer. This will lead to better results for businesses.


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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.

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. What are the five flows of SCM?

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. 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?


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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




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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.