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.
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