I interviewed Adeel Imrani who discussed Entrepreneurship in Supply Chain.
Thank you, Dustin, for inviting me for an interview. My name is AdeelImrani, and I'm going to speak today about entrepreneurship in supply chain.
Well, to begin, this topic is important because it helps startup and growing firms to tap into an untapped area for maximizing their business growth and profitability as well as customer satisfaction.
A brief about me... I started my career in supply chain in Pakistan with one of the telecommunication vendors. The company was called Quality Engineering. I was taking care of their warehouse and their distribution needs in supply chain. It was good experience for me because after that I had joined the United Safety International. It was the Canadian based oil and gas safety company. I joined their offices in Dubai. After that, I recently joined as the supply chain officer in [inaudible 00:01:25] corporation. It is a US-based [inaudible 00:01:34]firm.
Including my experience in all of these various companies, I gained diverse experience of many industries, and working in key positions. And from there on, I learned importance of entrepreneurship in supply chain, existing traditional supply chain and sharing the same experience with you here today.
Supply Chain Management and Entrepreneurship: Reasoning first by principle rather than by analogy
So, supply chain management means that the management of chains of supplies and the purpose of supply chain management is value addition. Almost all of the firms try to make supply chain as a core competence to get competitive edge. It exists in different forms and shapes in organization, which depends on the level of integration. And the firm is influenced, for example, by supply chain management policies, of firm's performance, the participants in the supply chain management of an organization have altogether different experience on performance levels.
So, the idea that the fundamentals of supply chains from supplier's supply to customer's customers can be used in an entrepreneurial mode. So, it is an idea which I can an influential one. I call this emerging concept as an entrepreneurial supply chain, and I believe that companies should aggressively implement and practice it.
But because it's a new concept, perhaps we need to set the stage to explain just what we mean. As an example, I would like to give an example, and I believe this example will be surely enough for our audience to understand that what entrepreneurship in supply chain management means.
So, I think will give an an example of a company, Tesla, managed by Elon Musk, the great entrepreneur. The example is... I think that it's also important for us to reason from the first principles rather than by analogy. What do I mean?
Normally, we conduct our lives, is reason by analogy, so that we are doing this because it's like someone else has already been doing this and it's like something else that was done like this, or it's like what other people are doing. So, it's kind of a "me too" type idea. And it's kind of mentally easier by analogy rather than from first principles.
But first principle is kind of physics ways to look at the world. And what that really means is that you boil things down to the most fundamental truth and say, "What are we sure is true? Or sure is possible is true?" And then, we reason up from there.
This takes a lot more mental energy to know. As an example, someone could say, and in fact, people did say to Tesla that battery packs are really expensive, and that's the way they always will be, because that's the way they have been in the past.
Well, no. And that's kind of dumb. If you apply that reasoning to anything new, then you wouldn't be able to even get to that new thing.
So, you know, we can't say that horses... like nobody wants a car, because horses are great, and we are used to them, and they eat grass, and they just graze all over the place, in you know that's not like, there's no gasoline. And people will not buy cars anymore.
So, in fact, people did say that. And for batteries, they also said that it's going to cost a lot. Historically, I believe it was costing around $600 per kilowatt hour. So, it's not going to be much better than that. People did say that.
So, what would an entrepreneurial supply chain say? Not like the people who would reason by analogy. An entrepreneurial supply chain would reason by first principle rather than by analogy.
What would an entrepreneurial supply chain say in terms of this battery example? An entrepreneurial supply chain would say, “No. So, we have a problem. Batteries are expensive.” So, they would say, "What are batteries made of, actually? And what's it going to cost each part of the battery? What's it going to cost?"
The first principles say, “What are the material constitutes of the batteries and what is the stock market value of those material constitutes?”And we say, "We've got cobalt, aluminum, nickel, carbon, and some polymers for separation and [inaudible 00:07:30]."
So, entrepreneurial supply chain would break that down on a material basis. Actually, if we want that on London Metal Eexchange, what would each of those things cost? And people will be surprised and say, "Okay. It's like $80 per kilowatt hour." So, clearly, we need to think of clever ways to take those materials and combine them into shape of battery cell, and you can have a battery much cheaper than anyone realizes.
As a final conclusion, my finding suggests that the original capabilities of manufacturing or [inaudible 00:08:20] of small and medium enterprises support superior performance. The results provide empirical evidences that process a high level of entrepreneurial supply chain management competence perform better in their supply chain.
And all of the firms and their performance is led by an entrepreneurial supply chain management competence, preceded by a strategy and performance of those businesses. As a result, [inaudible 00:08:51] stressed the importance of entrepreneurial competence which proceeds and explains and indicates the strategies. We should view all these strategies as a superior performance.
It's been a pleasure talking to you, Dustin, and we will stay in touch, I believe. Thank you.
About Adeel Imrani
Supply Chain Manager ⇛ ● Strategic Procurement ● Spend Analysis ● Logistics Management ● BPO ● Inventory Control ● JIT