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By Ben Davis January 22nd 2019
Date: January 11, 2018 Written By: Karen Sams
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Rachel Yabut March 30, 2019
Today's supply chain industry is so huge and touches every aspect of every life on the planet, I was lost for a concise way to describe it, so I decided to research the topic.
Well, I didn't find a satisfactory synopsis of the supply chain industry as it is today mainly because"there is not yet a well-accepted definition of what industries fit into the supply chain economy." Says Abe Eshkenazi*, in his SupplyChain247 article "Defining Industries for the Global Supply Chain Economy".
However, Abe cites a Harvard Business Review article by authors, Mercedes Delgado* and Karen Mills,* where they propose a "novel categorization" for the supply chain economy. This new category, "represents the industries that sell to businesses and the government, as opposed to business-to-consumer (B2C) industries that sell for personal consumption".
Delgado and Mills suggest a new category to separate supply chain from the manufacturing industry, where it has traditionally been viewed as part of operations, and also from the lower wage service industry.
Given the supply chain economy's contribution of innovation and well paying jobs to the US economy, this new categorization could drive change in economic policies. The Delgado and Mills article concludes "Rather than an approach that relies solely on “bringing manufacturing back,” we must shift our policy solutions to focus on cultivating the supply chain service jobs that will drive America’s economy forward."
*Mercedes Delgado is a Senior Lecturer at the MIT Sloan School of Management, and the Research Director and Research Scientist of the MIT Innovation Initiative Lab.
*Karen Mills is a senior fellow with Harvard Business School and Harvard Kennedy School focused on competitiveness, entrepreneurship and innovation. She was a member of President Obama’s Cabinet, serving as Administrator of the U.S. Small Business Administration from 2009 to 2013.
*Abe Eshkenazi is the chief executive officer for APICS and APICS Supply Chain Council.
APICS is the association for supply chain management and the leading provider of research, education and certification programs that elevate supply chain excellence, innovation and resilience. APICS.org ASCM.org
The Supply Chain Economy and the Future of Good Jobs in America