A blog by

A blog by

Saturday 12 September 2015

A supply chain where no money changes hands

Rob Hughes of Live and Learn International prompted me to think about my professional understanding of a supply chain. My corporate experience taught me to think about supply as a series of requirements being defined, constraints being understood (timing, production, cost), contracts being negotiated. All resulting in a product or service being exchanged, often repeatedly for an end outcome. 

But how to consider this in the space of social change globally. In an environment where approximately 80 individuals hold more wealth than the rest of the world. How inequitable that those who most need the products that can improve their quality of life cannot afford to participate in our supply chain which has been developed in a capatilist world!

I have rarely heard social enterprise discussion where a non monetary exchange of goods is discussed. Rob used the example where in Vanuatu post cyclone families would cook a meal for a community who in exchange would support the family to rebuild their home.

I wonder how it would be possible to integrate both a monetary and non monetary exchange into the same supply chain. I believe the answer fundamentally lies in the definition and scaling of what constitutes value. 

It will take great skill to negotiate mutual value and have it defined by different systems; one monetary and one non monetary. For me this could be the fundamental reason why we should increase the value we place on emotional intelligence. To enable the world majority to participate through the value system defined by the world minority, one of money, there must be an increase in mutual understanding.

If both sides of an exchange, value what they are giving and receiving equally, does it matter what currency or scale they value it in? If the next step in the supply chain measures that value by a different scale again, does it matter? I say no, as long as value is reaching those to whom it can make the biggest difference. I think there is an exciting opportunity for non traditional thinking in this space.

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