Michael Rentz explains why the supply chains are in crisis.
The entire world has turned their eyes to the “Supply Chain.” It is a term that seems rather intuitive and easy to understand on its face. We all buy goods. We all see Amazon drivers and UPS and FedEx drivers delivering packages. We think this is our easy future—same day delivery by Amazon, with prices ever-falling. Unfortunately, this “last mile” that we are so used to observing is only a tiny fraction of the entire Supply Chain. To truly understand the Supply Chain, one must understand the container. But the container—and the Supply Chain for that matter—are counterintuitive in our postmodern, post-industrial world.
As with all technology that we have grown up with, we are used to technology getting better and more efficient at an extremely rapid pace. We notice computers and computing power getting stronger, smaller, and cheaper all at the same time. We notice mattresses getting better, cheaper, and easier to deliver. It is embedded into our psyche—things always improve with time. We apply this same logic to all industries—including the Supply Chain. But this couldn’t be further from the truth. Our Supply Chain Industry has basically been the same since the container was invented in the mid-1950’s. Consumer expectations have increased exponentially in all facets of life, but our Supply Chain industry has remained flat, and unfortunately, brittle.