from the conferences organized by TANGER Ltd.
What is the purpose of actual SCM concepts such as LARG SCM, SCM 2.0, Supply Chain Becomes Demand Chain? Is it maximising profit, quality, lead time, market share? All these maxims are supported by reductionistic way of system thinking, which declares that the whole is just sum of its parts and the best way which could be done is maximising the output of particular parts. Holistic way of system thinking declares, that this assumption is the same mistake as to lean the ladder against the wrong wall. Or in other words there is wrong assumption that disassembling the best possible components from best possible cars must bring together the best possible components able to create the best possible car. But it is nonsense. The car is not sum of its parts, same as businesses or supply chains. Reductionism way of thinking is responsible for the situation that maximal output of individual parts of any system leads to maximally average output of the whole system. Holistic system thinking organisation is customer-oriented so the purpose of its supply chains is maximal customer satisfaction, which derives the optimal output of its parts and its interactions. Customer-oriented solution consumes around 50% less resources than the reductionism system thinking maximising the output of particular parts.
Keywords: SCM, System Thinking, Holism, 3PL© This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.