Chapter 12 - Article Summary Flashcards
Article #1
The service sector, constituting 63.6% of the global economy, includes non-material activities like transportation, hospitality, and healthcare. The article breaks down the five main characteristics of services: intangibility, inseparability, inventory, inconsistency, and involvement. It highlights the significant environmental impact of certain services, such as the cruise industry, which is known for heavy pollution. The piece also discusses the growth of the knowledge-based quaternary sector, which includes industries like IT, education, and research, as well as the decision-making quinary sector, including top-level executives and government officials.
Article #2
The article outlines how companies can prepare for and manage supply chain disruptions, drawing lessons from the COVID-19 pandemic. It introduces the ADDAPT Framework, a strategy for supply chain resilience, emphasizing six interconnected capabilities:
Anticipate: Simulate and plan for potential supply disruptions.
Detect: Establish trip wires to identify disruptions early.
Diagnose: Analyze disruptions to understand their causes and effects.
Activate: Mobilize resources to mitigate disruptions effectively.
Protect: Develop long-term solutions to prevent recurrence.
Track: Monitor supply chain conditions in real time to predict disruptions.
The case study of Loblaw (Canada’s largest supermarket chain) highlights challenges faced during the pandemic, such as hoarding and supply delays, and how reactive measures like manual overrides and task forces were employed. However, proactive measures like playbooks, collaborative problem-solving, and strategic investments in data systems were recommended to enhance resilience.
