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Making Supply Chains Deliver More Than Just Faster, Cheaper Products

Performance measures drive incentives, and incentives drive behavior

Dylan Walsh
Wed, 07/28/2021 - 12:02
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Supply chains are having a moment. In March 2021, one of the world’s largest container ships got wedged in the Suez Canal, blocking 10 percent of global trade for a few days and launching a flotilla of memes. Currently, home builders are waiting for more lumber, while a shortage of computer chips has slowed down the auto industry. Steel, coffee, ketchup, and toilet paper are also in short supply. Earlier this year, the Biden administration launched a supply-chain disruptions task force to address “supply/demand mismatches” as the post-pandemic economy restarts.

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Of course, even when they’re not making headlines, supply chains are always there. Yet most people never give a thought to these invisible and surprisingly fragile networks of trade that make modern life possible—until they break.

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