Flow

How the Best Supply Chains Thrive

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Pub Date Jul 12 2022 | Archive Date Aug 05 2022

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Description

This book describes the concept of flow, which evokes physical properties that exist in nature, such as the flow of electricity, the flow of time, and the flow of materials. In terms of process optimization, flow encompasses the integration of end-to-end supply chains and the movement towards relocation of the global supply base to near-shore and on-shore geographies. Achieving flow is essential for organizations seeking to improve their supply chain performance in a time of increasing disruption that is likely to continue for some time.

This book highlights the high-level effectiveness of business strategies that use predictions based on the sequence of world events, global supply chains, and data gathered by smart technologies. By broadly applying physical laws to the global supply chain, Rob Handfield and Tom Linton explore the impact of supply chain physics on global market policies, such as tariffs, factory location, pandemic response, supply-based geographies, and outsourcing.

The authors provide specific recommendations on what to do to improve supply chain flows, and include important insights for managers with examples from companies such as Biogen, General Motors, Siemens, and Flex on their response to COVID-19. Flow is an important resource not only for procurement and supply chain management professionals, but for any manager concerned with enterprise-level success.

Rob Handfield, PhD is the Bank of America University Distinguished Professor of Supply Chain Management at North Carolina State University and Executive Director of the Supply Chain Resource Cooperative.

Tom Linton is a globally recognized thought leader, author and former Chief Supply Chain Officer and Chief Procurement Officer. He currently is a senior advisor at McKinsey and Company, as well as executive advisory board member at supply chain software leaders Resilinc and Project 44.

This book describes the concept of flow, which evokes physical properties that exist in nature, such as the flow of electricity, the flow of time, and the flow of materials. In terms of process...


Advance Praise

    "Rob Handfield and Tom Linton shed a bright light on the most overlooked reality in the supply chain world: movement is money. This supply chain duo makes a compelling case that we will face big challenges in our increasingly VUCA world, where the physical realities – and physics – of supply chains will be pushed to the limit. A big takeaway is clear: the stakes are high, but the rewards will be great for those who can build and maintain resilient supply chains."
    Jason Schenker, Author of Futureproof Supply Chain and Chairman of The Futurist Institute

    "This is a great read for operations strategists and practitioners alike, who are looking to understand how to think through and navigate complexities of supply chain design. Leaning on creative parallels to fundamental laws that govern science, the book provides great insights into how one should think of optimization and evolution of supply chains in today’s world."
    Joydeep Ganguly, Chief Operating Officer, Gilead Science

    "The use of flows to explain and structure supply chain strategies and operations offers a powerful lens to integrate theories originated from physical laws with the evolving realities of supply chains. It provides the reader with insights and perspectives on how to innovate in this dynamic world."
    Professor Hau Lee, Thoma Professor of Operations, Information and Technology, Stanford Graduate School of Business

    "The new book by Linton and Handfield is a tour-de-force of an interesting lens on supply chains. Following their previous book’s biological lens "The Living Supply Chain," the authors now borrow from Physics concepts to focus on flows and speed as the elements that drive corporate balance sheet and supply chain performance. The authors argue convincingly about the need to align supply chain designs with the technology used to manage them, in particular visibility tools’ such as internet-of-Things. A must read for operations professionals."
    Yossi Sheffi, Elisha Gray II Professor of Engineering Systems, MIT

    "By recognizing our supply chain's composition, learning its behaviors and optimizing it responsibly, we can be more resilient to unforeseen challenges and get ahead of discoverable, predictable changes."
    Bob Murphy, IBM VP Supply Chain & Chief Procurement Officer

    "Linton and Handfield continue to challenge conventional supply chain heuristics. Even this deep into the 21st century, supply chains are too frequently understood – and managed – as a sequence of transactions. And they are too frequently managed retroactively, in response to events, rather than proactively, anticipating events. Applying principles from the physics of flow systems, the authors argue that our supply networks cannot remain rigid and static, but must evolve over time. This new conceptual approach importantly includes not just anticipating supply disruptions (i.e., supply risk) but also understanding changing demand signals, an often overlooked element of managing supply networks. Finally, this new way of thinking shifts attention from last century’s static financial metric – i.e., cost. In this new way of understanding supply systems, the authors focus on free cash flow. An emphasis on cost ignores the many other ways in which companies inadvertently destroyed value, by increasing inventories, or ignoring obsolescence, or failing to understand how freight delays extended the cash conversion cycle. In contrast, free cash flow incorporates all these elements of working capital, allowing companies to understand better how their supply ecosystems create value holistically."
    Tom Derry, Chief Executive Officer, Institute of Supply Management


"Rob Handfield and Tom Linton shed a bright light on the most overlooked reality in the supply chain world: movement is money. This supply chain duo makes a compelling case that we will face big...


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- Conference Exhibits

- Academic Journals



Available Editions

EDITION Hardcover
ISBN 9781487508326
PRICE CA$36.95 (CAD)