INSIDEVIEW
Supply
Chain
Physics
By Patrick Daly, Alba Logistics
You may well wonder what could be the possible connec- You see, the really curious thing about water freezing
tion between the world of natural Physics and the world is that close to the critical point of 0 degrees centigrade,
of Supply Chain Management. Well, there is a fascinating a very small change in temperature can cause the whole
new field of study called Social Physics that is actively system to shift very quickly and completely from one
examining the application of the laws of natural Physics state or phase to another. In effect it is either entirely
to the affairs of human beings. Philip Ball’s recent book liquid or entirely solid ice - there is nothing in between
“Critical Mass - How One Thing Leads to Another” gives a and the change from one to another happens all at once
fascinating insight into the subject matter and discusses in response to an imperceptibly small change in tempera-
the science in some detail (Philip Ball, Arrow Books, ISBN ture.
9780099457862). Similarly today, under the strain of recession many
As Ball explains, one of the most curious of the phe- businesses and indeed entire supply chains are moving
nomena that occur in natural Physics is what is known into regions where the organisational “temperature” is
as a Phase Transition. This happens when, for example, getting perilously close to its own particular critical point.
water freezes to ice or boils to vapour. These phase tran- And what would natural physics tell us about the condi-
sitions for water happen at what are called critical points tions close a critical point? It would tell us that very small
in temperature. For water, as we all know, the critical changes in this organisational temperature could cause a
points are 0 degrees centigrade for the solid to liquid dramatic and sudden phase transition.
transition and 100 degrees centigrade for the liquid to The concerning thing is that this would be a phase tran-
gas transition. sition between survival and prosperity on the one hand
“So what?” you may be saying to yourself. “I am a Sup- and failure and ruin on the other. Close to the critical
ply Chain Manager or a Logistics Manager, or a Company point small changes in the organisational temperature in
Director or whatever, what relevance do phase transitions the wrong direction will now have big effects shifting an
in natural Physics have for me”. Well the answer is - quite organisation from liquid and flowing to frozen rock solid
a lot in fact - read on and I will explain. in the blinking of an eye.
Understandable as it may be given the cur-
The tendency to batten down the hatches,
rent economic environment, the tendency to
batten down the hatches, suspend all change
suspend all change and action, cut investment and action, cut investment across the board
across the board and become introspective and
and become introspective and defensive could
be fatal at this time. This approach, in my opin-
defensive could be fatal at this time.
ion, will lead to a small but significant cooling
in organisational temperature that, close to the
56 MAY/JUNE 2009
www.chainaonline.com
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