Value nets: reinventing the rusty supply chain for competitive advantage
Article publication date: 1 August 2000
The traditional supply chain starts with components, which are assembled and pushed through distribution channels in the hope that someone will buy them. A value net, by contrast, starts with customer priorities and aligns the company operations and supplier relationships to satisfy real customer demand. Value flows to the customer, who receives a faster, more reliable, convenient, and tailored offering. Value flows to the suppliers, who have a more accurate reading of real demand, and value flows to the company managing the network, in the form of a differentiated competitive position, which generates greater profits and market capitalization.
Bovet, D. and Martha, J. (2000), "Value nets: reinventing the rusty supply chain for competitive advantage", Strategy & Leadership, Vol. 28 No. 4, pp. 21-26. https://doi.org/10.1108/10878570010378654
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