The F1 Supply Chain: Adapting the Car to the Circuit - the Supply Chain to the Market

Analogies can be a powerful way of understanding and improving industrial performance. This paper exploits the similarities between Formula 1 competition and racing car design and supply chain competition and supply chain design, as a way of understanding and managing change. Just as the performance characteristics of a racing car must be aligned to the requirements of the track, so the performance of a supply chain must be aligned to the requirements of its market(s) and product(s). We present a framework for graduated re-alignment of the supply chain; extending through agility, adaptability and transformation. The possibilities for aligning and re-aligning supply chains are reviewed in terms of seven operational dimensions. The approach is illustrated using examples drawn from the Mechanical Precision, Paper Distribution and Chemical market sectors. The extent to which a supply chain is agile and adaptable, together with the recognition of the need for periodic transformation is an important conclusion for supply chain designers.