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Value nets: reinventing the rusty supply chain for competitive advantage

David Bovet (Vice‐president of Mercer Management Consulting, Boston. He is co‐author of a new book, Value Nets, published by John Wiley & Sons.)
Joseph Martha (Vice‐president of Mercer Management Consulting, Cleveland. He is co‐author of a new book, Value Nets, published by John Wiley & Sons.)

Strategy & Leadership

ISSN: 1087-8572

Article publication date: 1 August 2000

Abstract

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.

Keywords

Citation

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

Publisher

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MCB UP Ltd

Copyright © 2000, MCB UP Limited