Demand management traditional model

The modern value chain management model has remained demand chain customer focused. Slywotzky and Morrison (1997) presented the progression of the value chain model from its traditional form into amodern form. Their model is displayed in Figure 8. This model commenced with the customer, and linked the customer back to management core competencies. 

In the emerging model, procurement departments must act more strategically. We described their traditional role in Chapter 14. The procurement function is often the interface between supply chain partners, and partnerships will make new demands on the fxmction. Dave Malmberg of CGR Management Consultants has defined four stages marking the evolution of the procurement function s role. 

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