Comparing military and supply chain strategy: are there lessons to learn?

Whether in business or the battlefield, strategy is the application of principles and tactics to develop plans that achieve objectives. Obviously there is more to it and, depending on which overpaid management consultant you talk to, some would say my definition is a gross oversimplification (after all, they do need paid).

Within the energy industry, we commonly talk of cross-industry learnings. But in reality, we don't walk our talk, so I have drawn a comparative analysis between military strategy and that of the supply chain (sticking to the definition above).

The format is simple, the paragraph entitled 'Military' will give a short outline of an established strategy that commanders have proven effective. The next, entitled 'Supply Chain' will offer the alternate strategy within that context. Let's have fun!

Military: The first step within any military strategy is to define an objective. These can be anything from a specific piece of territory to destroying a enemy unit. The objective serves as the goal of the operation and provide direction to the troops.

Supply Chain: The supply chain has defined their visions, and derived their own objectives. But have those objectives been transformed into a series of relevant goals that provides direction and resonate with the workforce? I am not so sure.

Military: Commanders conduct a thorough SWOT analysis of you and enemy forces, which includes context that may change the threat landscape. This is to ensure that they fight to their strengths, and also to the enemy's weakness.

Supply Chain: Unfavourable market conditions and rapid change means even a meaningful SWOT is unlikely to reveal an accurate threat landscape. This would inevitably result in lack of a investment and questionable (fluid) decision-making.

Military: Based on the SWOT, an action is developed. This includes capabilities of friendly and enemy forces. Contingencies are developed for parts of the plan where there is increased risk (vulnerability, escalation potential or uncertainty).

Supply Chain: If the threat landscape is not understood, contingencies (based on data-driven business impact assessments) are unlikely to be in place. This translates into resilience issues, with knock-on effects regarding energy security.

Military: Deception will be used as a catalyst for surprise, whereby an advantage is had by catching the enemy off guard, disrupting their plans and causing chaos. This involves attacking at unexpected times/ places, or using unexpected tactics.

Supply Chain: Diversifying in order to spread market exposure into less volatile areas is logical. For example, vertical integration to exploit synergies; horizontal integration into other complementary energy markets (oil&gas to geo).

Military: The probability of success increase exponentially by using technology to allow for effective firepower and better communication/ surveillance. This type of real-time intelligence allows military commanders to make informed decisions.

Supply Chain: We have already identified investment as a challenge; but what we do secure would see an attractive return on investment if it was funneled into creating a competitive market advantage through technological advancement.

Military: Intelligence feeds unconventional warfare, when tactics not traditionally used (sabotage, espionage, psychological) are deployed to disrupt/ create chaos.

Supply Chain: The supply chain must attract/ retain the best talent. In today's world, where money is losing value, unconventional tactics are more powerful with many firms adopting hybrid working, unlimited holidays, development, etc.

Military: Joint operations involve the coordinated use of different branches of the military (army, navy, air force) allowing for the effective use of all the available friendly resources in order to bring them to bear in a cohesive and effective force.

Supply Chain: There must be more collaboration and alliances between those who compliment each other within the market. This is so they can pool resources and benefit from economies of scale/ leverage their increased joint market share.

Military: Logistics involves ensuring your forces are well-fed, well-equipped, and well-prepared. The use of advanced technology, such as autonomous vehicles and drones to ensure that supplies are delivered when and where needed.

Supply Chain: Again, if the SWOT has not been completed, and the vulnerability of the value chain is not truly understood, the smallest market fluctuation could cause the house of cards to fall. Risk and predicative analysis is required.

By understanding, considering and logically applying a range of these tactics then you could ensure your supply chain company is fighting fit and ready to take the battle to the enemy. If not that, then resilient enough to fight off an attack.