Dynamic Supply Chains Distributed Logistics

Photo by Monika Grabkowska

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What are dynamic supply chains?

Essentially a buzzword referring to the fact that supply chains can not be understood as linear systems.

Supply chains are best understood by exploring network dynamics. Every point in the network will impact the whole network. There are no hard boundaries to the network.

Everyone in the network depends on everyone else but also needs to be able to operate with flexibility.

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Short Supply Chain Networks vs End to End Supply

• Jane supplys salad to a food hub and drops off at all the cafes in the area on the same harvest day
• Joe delivers bread in the region and picks up some of the food hub box to take back to his neighbours at the same time.

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• Central company to distributor to buyer, all managed either in house or with as few contracts as possible
• Supply side and sale side, concentrating power in the network as single actors attempt to become more ‘efficient’ and achieve ‘economies of scale’

Network Supply Chain

End to End Supply Chain

What questions should we be asking?

As a backbone in short food supply chains this means understanding the needs of how each community food enterprise fits into the wider network.�

How can we conceive of and visualise these interconnected supply chains, both within our sector and outside, to help community food enterprises participate?�

How is logistics changing to meet the needs of dynamic supply chains and how can we prepare and help community food enterprises benefit from alternate logistics models?

Different Network Models

Different Network Models

In reality we probably want to find all these network dynamics interconnected across our food systems.

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A fractal structures from a 1 acre smallholding through to international shipping routes.

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Trying to BE the whole supply chain puts us in competition with everyone else, fighting for market, funding, investment etc.

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Future of Logistics

Logistics is the most expensive part of running a community food enterprise.

With new technologies such as drones and driverless cars the logistics space will likely transform quickly. It will become increasingly efficient to outsource logistics even in rural areas.

Opportunities will exist in interoperating with innovative logistics companies working to leverage this tech.

This will impact all movements of produce:�- From producer to aggregator/processor�- Between enterprises�- From enterprises to end shopper

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What does this mean for us?

1. Enterprises need to be able to offer, combine, alter and split products from other suppliers.�
2. Suppliers and enterprises need to be able to easily communicate with other suppliers and enterprises in the network and outside of the network, particularly on inventory�
3. Every product sold must be fully traceable at the moment of purchase and in perpetuity�
4. Movements of goods within the network must be interoperable through our API, inside and outside the network.�
5. Enabling this flexibility means we’ll be in a better position to adapt. This is as relevant for preparing for market shifts as it is for preparing for climate shocks and everything else this world might throw at us.

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