The Food Distribution Channel:

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The Food Distribution Channel Lean, Responsive
and Increasingly Vulnerable By Dr. Donald J.
Bowersox The John H. McConnell University
Professor and Dean Emeritus, Eli Broad College of
Business Michigan State University IAMA 15th
Annual World Food and Agribusiness Forum June 27,
2005 Chicago, IL
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The 21st Century Strategic Challenge is to
Reinvent 19th Century Business Structure and Best
Practice
Most institutions and best business
practices were developed and perfected to
overcome problems and challenges that no longer
exist.
Scarcity Limited Technology Adversarial
Posture
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21st Century Supply Chains Transition from
Industrial Age to Information Age
There has been more change in best practice
during the past decade than in all decades
combined since the industrial revolution The
rate of change is accelerating
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Information Technology - The Delta Force
Substituting Information For Inventory and
Process While Reducing Complexity
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Information Technology - The Delta Force
Internet 2 / PlanetLab and Beyond - A New
Communication Backbone
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Information Technology - The Delta Force
Digital Business Transformation (DOB 2000)
Internet 2 / PlanetLab and Beyond - A New
Communication Backbone
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Information Technology - The Delta Force
A Major Paradigm Shift From Anticipatory
Toward Responsive Business Model
Digital Business Transformation (DOB 2000)
Internet 2 / PlanetLab and Beyond - A New
Communication Backbone
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Information Technology-The Delta Force
Anticipatory Business Model
Forecast
Buy Components and Materials
Manufacturer
Sell
Deliver
Warehouse
Forecast Driven Push Mentality Allocation
Paced
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Information Technology -The Delta Force
Responsive Business Model
Buy Components and Materials
Manufacturer
Sell
Deliver
Endcast Driven Pull Mentality Requirements
Paced
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Information Technology-The Delta Force
Balanced Business Model Mixing Competencies
Capturing Opportunities Balancing Seasonality,
Scalability and Responsiveness
Continuous Flow
Continuous Flow
Integrated Service Providers
Integrated Service Providers
Industrial Distr. or Consolidation Warehouse
Wholesaler/ Distribution Center
Supplier
Manufacturer
Retailer
Customer
Direct Delivery
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Information Technology - The Delta Force
The Strategic Imperative Postponement-
Mass Customization Late Accommodation
Internet 2 / PlanetLab and Beyond - A New
Communication Backbone
Digital Business Transformation (DOB 2000)
A Major Paradigm Shift From Anticipatory
Toward Responsive Business Model
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THE INTEGRATED SUPPLY CHAIN FRAMEWORK
Relationship Management
Information, Product, Service, Financial and
Knowledge Flows
E N D C O N S U M E R S
SUPPLY NETWORK
M A T E R I A L S
INTEGRATED ENTERPRISE
MARKET DISTRIBUTION NETWORK
Customer
Procurement
Accommodation
Logistics
Manufacturing
Capacity, Information, Core Competencies, Capital
and Human Resource Constraints
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THE BROKEN SUPPLY CHAIN
Relationship Management
Information, Product, Service, Financial and
Knowledge Flows
E N D C O N S U M E R S
SUPPLY NETWORK
M A T E R I A L S
INTEGRATED ENTERPRISE
MARKET DISTRIBUTION NETWORK
Customer
Procurement
Accommodation
Logistics
Manufacturing
Capacity, Information, Core Competencies, Capital
and Human Resource Constraints
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Disrupted Events of the New Millennium
Infrastructure Obsolescence and Renewal
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Disrupted Events of the New Millennium
Global Supply Chain Reach
Infrastructure Obsolescence and Renewal
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Disrupted Events of the New Millennium
Terrorism
Infrastructure Obsolescence and Renewal
Global Supply Chain Reach
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Disrupted Events of the New Millennium
Security
Infrastructure Obsolescence and Renewal
Global Supply Chain Reach Terrorism
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Disrupted Events of the New Millennium
Compliance Traceability
Infrastructure Obsolescence and Renewal
Global Supply Chain Reach Terrorism Security
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Conclusion