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PCB007-Sept2020

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58 PCB007 MAGAZINE I SEPTEMBER 2020 We'll see companies try to develop a broad- er supply chain, with more suppliers that are geographically dispersed, but that gravitational pull of lower cost is always going to be there. I predict that it's only going to be a matter of time before we swing back the other way again and reduce the number of suppliers, than try- ing to concentrate our purchasing in certain parts of the world. Finding the balance is very, very difficult. Johnson: This pendulum is going to keep on swinging until you can diversify and spread out the entire supply chain. You're going to see problem points somewhere. Rodgers: Exactly. There's going to be special- ization, and that's what has happened with electronics manufacturing in China, particu- larly in Guangdong province; there's just an incredible concentration of skilled and experi- enced suppliers. To reproduce that elsewhere is going to be difficult and expensive. Johnson: What are your thoughts on Block- chain, Tim? Rodgers: Blockchain is getting a lot of atten- tion. It's great for certain supply chains be- cause it's basically a distributed ledger that al- lows every step of the supply chain to make entries that are visible. It provides traceability, and it's a great technology, but I would caution not to jump into blockchain without thinking clearly about what problem it would solve for their business. Do they have a business where traceability is important, or where they really need to know exactly what's going on at every step of the supply chain? Blockchain is still a relatively expensive technology, and if you're looking into it, be clear about what problem you're trying to solve before you invest in that technology. We're seeing examples of companies in the food business that want to make sure that they have traceable supply chains, where they know exactly what the provenance is for the raw materials that go into their products, and whether they are using sustainable practices. It's also a great way of eliminating some of the paperwork in supply chains. But I'm just afraid that people will spend a lot of mon- ey on blockchain and not get the results for which they were hoping. Then, blockchain gets a bad rap. Johnson: In The 7 Habits of Highly Effective People, Stephen Covey says, "Begin with the end in mind." Rodgers: Absolutely. What problem are you trying to solve? Then, seek a solution to that problem. Don't rush and implement some- thing because you think it will magically im- prove your performance. You have to dig a lit- tle bit deeper. Johnson: It does. Tim, this has been a fantastic conversation. Thank you so much. Rodgers: You're welcome. PCB007

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