Today I want to talk to you about something that sounds like a contradiction: the idea that our greatest weakness, as a sector, is also our greatest strength.
To get there, I’m going to use a few concepts borrowed from operations management, economics and even a little bit of physics: efficacy versus efficiency, supply-driven versus demand-driven industries, Just-in-Time, Lean Management, Kanban, the efficiency paradox, oversized production assets and local supply chains.
And I’m going to ask you a question that I think every professional in this business should be able to proudly answer.
How is it possible that during the pandemic the powerful, modern, sophisticated industries — carmakers and so many others — had to stop their production lines, while the fresh produce sector not only kept working but dealt with a spectacular surge in demand?
What is so special about this sector that it can do what is impossible for others?
The reason is this: “our own weakness becomes our most resounding strength” when we face volatility. Let me explain why because it is not luck. It is an industry structure built up by means of incentives. And once you understand it, you’ll never again let anyone look down on this business with a condescending smile.
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