‘An Overemphasis on Efficiency Makes Systems Vulnerable’

Supply chains are at a turning point. For decades, efficiency was the main focus. But regulations, geopolitical tensions, trade shifts, climate disruptions, and AI are forcing organizations to rethink this approach. In his inaugural lecture, Professor Taher Ahmadi presents a new framework for supply chain management, arguing that future-ready supply chains must be collaborative, intelligent, circular, and resilient. They cannot rely on efficiency alone.

Ahmadi explains that efficiency has led to lower costs and faster processes, but that it has also made many supply chains more vulnerable to disruptions. “Recent disruptions, including the COVID-19 pandemic, armed conflicts in Europe and the Middle East, the trade war between the US and China, and climate-related shocks, have made these limitations increasingly visible”, Ahmadi explains. “These disruptions are no longer exceptions, but structural features of global business.”

A Future-Oriented Supply Chain Management Framework

In response, Ahmadi introduces the house of future-ready supply chain management. Within this framework, collaboration across organizations forms the foundation, while digital intelligence acts as the connecting and facilitating layer that supports three interconnected pillars: efficiency, circularity, and resilience. Together, these pillars contribute to long-term value creation and economic viability.

From Linear To Circular Models

Circularity is an important part of the new model. According to Ahmadi, the traditional linear ‘take, make, dispose’ model is not sustainable. “This linear model not only leads to the depletion of virgin resources, but also creates large amounts of waste and contributes to greenhouse gas emissions.” According to him, the future lies in efficient circular solutions. “Imagine that when a part of your vacuum cleaner breaks, the manufacturer sends you the digital design file so the broken part can be printed by the nearest 3D printer in your neighborhood. That could significantly extend the lifespan of products. We need to find efficient models to scale up such solutions, and digital intelligence is the key enabler.”

A Paradoxical Lens

According to Ahmadi, organizations need to learn how to balance short-term and long-term goals. “These interests can conflict, and that is where a paradox arises. Take the example of using multiple suppliers. It makes you less dependent and therefore more resilient, but it also costs more. The same applies to holding inventory. Nevertheless, it is important to include the long-term benefits in decision-making.”

The Role of Consumers and Policymakers

The transition to circular supply chains is not a task for companies alone. According to Ahmadi, it requires the involvement of multiple actors. “Consumers play an important role in what they do and do not accept”, he says. In addition, he sees a clear role for governments and policymakers. “They must encourage the business community to take proper steps through legislation and regulations. Europe is reasonably ahead in this regard. Of course, this must be done carefully, so as not to undermine firms’ competitiveness on a global scale.” In this context, efficient circularity contributes not only to sustainability, but also to resilience by creating a secondary supply channel through recycling and resource recovery.

A Different Mindset

The shift towards multidimensional supply chain management also demands something from professionals in the field. “First of all, it is important to invest in new skills, particularly critical thinking and systems thinking. People need to be able to connect the dots and see at the bigger picture in the industry and sector they are operating. What developments are taking place at the level of the national and global economy? These all influence one another.” Finally, according to Ahmadi, a different mindset is also needed. “We must no longer think in terms of either-or, but in terms of both-and while trying to weigh short-term and long-term goals.”  

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