5 Replies Latest reply on May 9, 2014 4:14 PM by Alvaro Fernandez

    Will most Governments have a ministry of Supply Chain in near future?

    shreyas27 Novice

      The governments of the world run one of the biggest supply chain, yet in absence of a separate ministry of supply chain the opportunity to add Value and make its SC lean & green is lost. In the next few years the governments of the world will realise the importance of a Supply Chain ministry for their country's development (and their re-election !)

      The City of Chengdu in China has made a beginning. It has set up a City Logistics Office with Chen Zhongwei as director. Will the other governments follow suit?

        • Re: Will most Governments have a ministry of Supply Chain in near future?
          RDCushing Master

          I hope this does not come to pass. Government intervention almost never improves quality, increases options, accelerates delivery or lowers costs. In fact, history shows that just the opposite is true.

            • Re: Re: Will most Governments have a ministry of Supply Chain in near future?
              shreyas27 Novice

              I agree that government intervention slows down the growth when it comes to day to day management. But when it comes to Policy making and resource allocation it is the government which can change the game.

              May not be true for the western world but in India for eg due to governments taxation policy any B2C company would be forced to have @ 30 stock-points whereas logistically 5 would suffice.

               

              Also govt allocation of resources is a game changer. Chengdu in China is alive example. The city has grown from a zero to hero due to government focus and resource allocation. Apple's global product availability is dependent on Chengdu's logistics capability which is being supported by government with everything logistics from a railway line upto Poland to a Logistics Director.

                • Re: Re: Will most Governments have a ministry of Supply Chain in near future?
                  RDCushing Master

                  Yes, but the point (for me, anyway), is that we should all be seeking LESS government intervention in the marketplace, not MORE government intervention. The correct number of stock-points, for example, varies by industry, individual enterprise operations, and even by product. The market should determine the number of stock-points, not the government.

                   

                  -- Richard

                    • Re: Re: Re: Will most Governments have a ministry of Supply Chain in near future?
                      shreyas27 Novice

                      Richard, I fully agree with you that government intervention is unwelcome. Most governments have no governance

                      Indian governments have improved a lot from 'Worst' to 'Bad' over the years and intervention from them is also unwelcome

                      What I meant by ministry of supply chain is that SCM professionals would be inducted to drive governments performance and also ensure that SCM friendly policies (read value adding) are introduced

                       

                      Shreyas

                      • Re: Re: Re: Will most Governments have a ministry of Supply Chain in near future?
                        Alvaro Fernandez Apprentice

                        I don't wish more government intervention, but they have a say in the infrastructure (roads and rails to mention some) which are eventually subsidizing our supply chains. A case in point, there are resources to be mined in the north of provinces such as Ontario and Quebec, yet I don't see the private sector building the roads to get them. Even Alberta's oils pipelines needed some support from the government of Canada, maybe not financially as most of the funding is private, but politically in the sense of getting the public to agree there is a need to diversify the markets for the oil sands.

                         

                        We might not see a Supply Chain ministry, but I do think those already existing (such as Communications, Transportation, Energy, Trade and Infrastructure) could use a bit of supply chain help