offshoring: articles

Service Sector (Tertiary)

Non-material activities: transport, haircuts, hotels, restaurants.

Largest sector

63.6% of global GDP; US leads with 30% of output.

Intangibility

Not physical.

Inseparability

Produced & consumed together.

Inventory

Cannot be stored.

Inconsistency

Each service is unique.

Involvement

Provider & consumer both participate.

Environmental Impacts

Services (tourism, transport) can pollute heavily.

Cruise ships

Massive sewage/greywater, burn waste releasing toxins, CO₂, heavy metals; one ship = 350,000 cars pollution.

Energy usage of ships

Use energy like 80,000 households; dump 100M gallons petroleum/year.

Knowledge Economy

Quaternary: knowledge-based (IT, R&D, finance, education, media); >40% US economy (1985); requires high skill.

Quinary

Top-level decision-makers (CEOs, government); make global/country-level decisions; 'gold collar' professionals.

What percentage of organizations had emergency response centers before the pandemic?

Only 16% of organizations.

What capabilities are needed to manage disruptions in supply chains?

ADDAPT capabilities.

What is the largest Canadian supermarket chain mentioned in the case study?

Loblaw.

How many stores does Loblaw operate?

2,400 stores.

What was Loblaw's revenue mentioned in the case study?

US$41 billion.

What type of emergencies did Loblaw's pre-pandemic plans cover?

Local emergencies, not global disruptions.

What were some challenges Loblaw faced during the pandemic?

Demand spikes, supply delays, and gaps in vendor coordination.

What task force did Loblaw create in response to the pandemic?

Pandemic task force.

What is the first capability of the ADDAPT framework?

Anticipate.

What does the 'Detect' capability in the ADDAPT framework involve?

Spotting supply chain deviations early using trip wires and dashboards.

What does the 'Diagnose' capability focus on?

Analyzing causes and impacts to plan effective interventions.

What is the purpose of the 'Activate' capability in the ADDAPT framework?

Quickly deploy resources to restore supply flows.

What does the 'Protect' capability aim to achieve?

Turn short-term fixes into long-term safeguards and test resilience.

What does the 'Track' capability involve?

Continuous monitoring of supply chains and defining leading indicators of disruption.

What strategic recommendation is made regarding supply chain management?

Make supply chain a strategic function led by senior executives.

What type of technology should be used to detect threats early in supply chains?

Real-time technology and external data.

What should companies prepare and test with suppliers according to strategic recommendations?

Emergency playbooks, alternative routes, and reserve capacity.

What is a key takeaway regarding the ADDAPT framework?

It makes supply chains resilient to both known and unknown-but-knowable risks.

What elements are required for effective supply chain management?

People, processes, systems, and coordination inside and outside the company.