SUPPLY CHAIN STRATEGY

E d w a r d H . F r a z e l l e , P h . D . “material, information, and money”. Ideally those three flow simultaneously, in real-time and without paper. This logistics flow is “between consumers and suppliers”. That’s the span of the activity, and it is bi-directional. We can also learn a lot about “logistics” from the origins of the word itself. The root word for logistics is “logic”. According to Webster, logic means “reason or sound judgment”. RightChain™ leans heavily on reason and sound judgment in walking through the decisions that make up a supply chain strategy. The root word for logic is “logos”, a Greek word meaning, “Word of God, divine reasoning, wisdom, balance”. RightChain™ also leans heavily on Heavenly resources and Wisdom for working through complex supply chain tradeoffs. (Our Japanese team, a joint venture of LRI Japan and Mitsubishi, is called the LogOS™ Team in honor of this approach.) If that’s “logistics”, what is a “supply chain”? There seems to be just as much confusion about the definition of “supply chain” as there is about the definition of “logistics”. Everyone seems to have their own. Here’s ours. The supply chain is the infrastructure of factories, warehouses, ports, information systems, highways, railways, terminals, and modes of transportation connecting consumers and suppliers. | 11

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