Using the Power of Force Multipliers

2,500 years ago Sun Tzu described 5 fundamental factors that affect the outcome of battle and discussed how their careful understanding and optimization could magnify the force of an army to increase its chances for success.

Therein lies the origin of a military concept called “Force Multiplication” -- the optimization of specific factors that deliver disproportionate leverage to the overall power of an organization to achieve its goals.

Much has been written about the application of this principle to business and industry. The general view is that industry specialists need to identify certain key strategic factors necessary to win their respective battles, and to execute continual evaluation and improvements around those factors.

The mix of critical strategic factors is dynamic. There are constantly evolving forces that elevate some factors while diminishing others. These include technological, cultural, environmental, and competitive changes -- whether internal or external -- that successful organizations continually monitor and re-assess. The degree to which these companies are able to detect and respond to these changes -- and understand which factors are emerging as potential force multipliers -- often determines the extent of their success.

The old saying “Generals should be careful not to fight the last war” reminds us that the field of battle is constantly changing. Strategies and tactics that worked in the past might now be obsolete. Inertia is the ultimate foe.

Example: Geographic Location

Location used to be a key success factor for product distributors, but advancements in technology and decreasing transportation costs -- especially for smaller loads and parcels -- have relegated location to a lower level of importance. Firmly established companies that thought they were protected by mere geography are encountering disruptive competitors from far off places that they could not have imagined just a few years ago.

Favorable geography, which once multiplied the relative effectiveness of a distributor, has simply become less impactful relative to other factors such as computerized tracking systems and customer interfaces.

Example: Infrastructure

Large attractive buildings and offices have historically been important within industries that primarily employ “thought workers”, but increasingly businesses such as these are realizing that technology allows workers to virtually co-locate without ever leaving their homes.

The Work From Home (WFH) movement has diminished the importance of centralized “group office” items such as IT systems, phone systems, printers, copiers, and conference rooms. Where once these things were considered important to create synergy and even to attract talent, now they play a much smaller role in the success of companies -- especially those that do not deal with physical products.

The emerging “force multipliers” in these industries are trending toward the implementation of technologies that facilitate the management of a distributed workforce. Companies that correctly focus on these things will eventually dominate their respective competitive landscapes.

Supply Chain Force Multiplier: Distributed Contingent SCM Resources

Supply chains are becoming more spread out as distant communication and transportation becomes easier.

Although most correspondence between OEM's and suppliers can be done long distance, it is often critical to physically visit a vendor to examine parts and processes -- and to solve problems. However, the Covid-19 pandemic has dramatically increased the difficulty of such visits by internal personnel. So many companies are utilizing outside services to augment their Supply Chain Management organizations.

Within the world of Supply Chain Management an emerging “force multiplier” is the effective utilization of a distributed contingent supplier management workforce.

Effective Supply Chain Managers are utilizing external resources so they can be proactive and responsive to any issues that come up in their supply base. By sending trusted local representatives into suppliers on an as needed basis, OEM’s are able to minimize travel cost and personnel exposure thereby extending the reach and power of their respective organizations.

As with any external resource, the key to using is contingent supplier management workforce is finding one with compatible resources and experience as it relates to your industry and company and then developing a close and trustful working relationship with clearly defined goals and assignments. OEM's that master this “force multiplier” will achieve increasing success in this dynamic environment, especially compared to those OEM's that remain stuck in their ways -- continuing to fight the last war!

Contact us for more details on how we can help your team expand their reach by using contingent supply chain resources that are local to your vendors!