Venture Capitalist v.s. Venture Laborist

Are you a "Venture Capitalist" or a "Venture Laborist"? Everyone knows what a Venture Capitalist (VC) is but if you did not read this web page then you would not know what a Venture Laborist is (because I just invented the name along with the idea).

The basis of supply chain risk management is to convert labor into inventory (asset or capital). Capital is much easier to manage and represents an asset, e.g.: an element that can be sold off for liquidity. On the other hand labor has been difficult to control and there is no way to stockpile labor for on-demand supply. But, what if that is not true? Are there, perhaps, more modern techniques to manage risk through better use of labor? And, why would that be a desirable thing to do in the first place? The next paragraphs answer those questions.

Whenever something is converted there is a price to pay. That realization may come from a commodity exchange where the output of labor is placed onto an exchange and represented by a capital thing to buy. The price of conversion is the difference between buy and sell (spread, or any other term you may which to use) and other fees. Any conversion, in order to make it work, is an expense because the conversion is purchased. A typical product in a supply chain undergoes many conversions before it gets to the end user (consumer).

In comes a new way of thinking. The end user (consumer) bypasses the conversions and works with the manufacturers directly via a transparent supply chain where labor defines output. That is the essence of modern automation which includes many technologies such as Agile, iterative methodology, DevOps and autonomous delivery systems. Those all work in unison to form a complete supply chain without the normal "hubs" of inventory. It is those "hubs" that are bogging the system down and causing friction between consumers and manufacturers. That friction is an inefficiency and frankly speaking represents a payment to capitalists.

Adding capital is what a Venture Capitalist (VC) does and represents an inefficiency to the output of labor. Getting rid of that inefficiency is what a Venture Laborist (VL) does. A VL is not a socialist, although alarms might be going off in your head that says they are one and the same. Rather a VL recognizes that the modern supply chain diverts output to third parties and represents an overhead to business. Eliminating that overhead is an opportunity for efficiency. Do you understand the concept? I am looking for the rarest of rare investor that is not a VC but rather a VL; or at least understands the potential of this new way of business.

Normally, if something is more efficient then it has already been attempted and failed. In the past technology has not been sufficient for this way of thinking (and is still not mature enough) to be enacted. But, it is getting there. Very close but not discovered in its instantiation yet. Realigning the supply chain is an enormous undertaking with equally enormous rewards for the one that does it right.

Too abstract for you? Well, I am not going to publish some stealth-oriented business objectives. To learn more please contact Ed VanVliet at 814-441-0165 or ed@vvi.com