The Chain Podcast · ASCM (The Association for Supply Chain Management)

The reBound: How to Win in the Era of Dynamic Supply Chains

·21 min·1 clip

Arun reveals why even large corporations can't predict or navigate today's supply chain disruptions on their own.

This episode explores the concept of dynamic supply chains and the emerging "supply chain as a service" model. Hosts Abe Eshkenazi and Bob Treblecock interview Arun Kochar, a partner at Kearney and frequent contributor to supply chain publications. They define a dynamic supply chain as one characterized by unpredictable, rapid changes that cannot be easily planned for. Arun Kochar explains that modern supply chains are now viewed as more end-to-end systems, extending from a supplier's own suppliers down to the end consumer. He cites disruptions like the pandemic, inflation, and geopolitical tensions as drivers of this new reality, noting that ocean freight rates from China to the U.S. once skyrocketed to $20,000-$30,000 per container. He argues that large corporations now realize they must tap into their broader ecosystem to handle these challenges, as no organization can navigate them alone. Geopolitical factors are causing a complete rethink of manufacturing and sourcing footprints, directly influencing consumer buying decisions. A key insight is that dynamic supply chain management involves both risk mitigation and building agility to pivot quickly in the face of the unknown. The "supply chain as a service" (SCAS) model is presented as a strategic response, ranging from in-house expertise to fully external "supply chain for hire." Arun outlines four components of this model: Centers of Excellence, traditional outsourcing, unique partnerships, and supply chain for hire. He provides specific examples, including PepsiCo's digital supply chain hubs and Kraft Heinz's global center of excellence in the Netherlands. The conversation highlights how companies like Kylie Cosmetics operate with minimal infrastructure by relying entirely on external value chain providers for end-to-end supply chain management. Arun proposes a five-step process for organizations to adopt this model, starting with assessing internal capabilities and culminating in scaling the service-based arrangement. The episode maintains an educational and conversational tone, structured as an expert interview focused on strategic business concepts. Listeners interested in modern logistics, operational strategy, and business model innovation would find this episode valuable, while those seeking highly technical or narrative-driven content might prefer to skip it.

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