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Value nets: reinventing the rusty supply chain for competitive advantage

Value nets: reinventing the rusty supply chain for competitive advantage 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. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Strategy & Leadership Emerald Publishing

Value nets: reinventing the rusty supply chain for competitive advantage

David Bovet; Joseph Martha
Strategy & Leadership , Volume 28 (4): 6 – Aug 1, 2000
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6 pages

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Publisher
Emerald Publishing
Copyright
Copyright © 2000 MCB UP Ltd. All rights reserved.
ISSN
1087-8572
DOI
10.1108/10878570010378654
Publisher site
See Article on Publisher Site

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.

Journal

Strategy & Leadership – Emerald Publishing

Published: Aug 1, 2000

Keywords: Supply chain; Distribution channels; Value chain; Supplier relations

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