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Cass Pursell

Commentary by Cass Pursell

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July 31, 2008
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The Mother of Invention?
I’m new to working in Supply Chain and am finding it extremely interesting, challenging, and critical to the long-term success of the organization. One thing that I’ve noticed in particular is that, more than for any other business function, logistics conditions around the world are hugely variable and can be rather brutal. What seems to happen in most cases is that the difficult conditions lead inevitably to creative logistics solutions. This observation corroborates one of my favorite pet innovation theses: that a lack of resources can actually lead to innovation.

A few examples of this phenomenon from around the world:

  • In the United States, the extreme logistics condition is the short-term focus on shareholder return and return on capital. In response, an extensive set of logistics finance and performance measures have been created, as well as supply chain integration and logistics information systems focused on the reduction of capital assets.
  • In Latin America, there is limited to no logistics infrastructure or logistics service providers. In response, a new industry has developed concerned with the importation of logistics service providers and education.
  • In Japan, there is a lack of land and human resources. In response, automated storage and handling systems have been developed and perfected, and multistory logistics facilities designed.

Can organizations somehow tap into this tendency? I know my bosses have historically exhorted me to do more with less - it never occurred to me that they may have been trying to drive improved innovation.

Comments [3] | Permalink
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posted by  Ellen Domb  [ http://www.trizpqrgroup.com ] July 31, 2008 at 6:45 pm
Hi, Cass--I agree. One of the powerful TRIZ tools is the use of existing resources that are in or near the "problem" to solve the problem, and a systematic way of looking at the resources (which include information, energy, business models, etc., not just "stuff.")

In the examples you mentioned, people were using their knowledge of the limitations as resources--If you don't have a lot of square feet for a warehouse, use cubic feet. If you don't have the capability to do something yourself, see if a supplier could do it, or (really radical) if the customer could do it.
 


posted by  shyam gopal July 31, 2008 at 11:55 pm
Ellen- very illustrative comment on the use of resources near the problem.
Any examples that can be shared, on the appliaction of this principle will make it even better
 


posted by  Cass Pursell August 1, 2008 at 5:48 pm
What's interesting to me - in addition to the individual examples of people using their knowledge of the limitations as resources - is the idea that once someone innovates around a limitation, that innovation becomes a best practice that everyone can pull from. Not necessarily to overcome a limitation, but to optimize. A truly world class organization would be aware of what's going on around it, then borrow from and implement the best of each.
 

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