Extended supply chains

These are challenging questions for retailers, and this level of data can only be sourced from the supply chain. It is clear that a key component to developing solutions to the sustainability challenges the industry is facing lies with the relationships and understanding retailers have of their extended supply chain. 

To implement a fully traceable system requires a significant change in the operation of a retailer and its relationships with its extended supply chain. Consider a simple cotton shirt to demonstrate what this definition means for the sustainable retailer. To support any sustainability claims about the shirt the retailer would need to ... 

In reality, less than 2 percent of the trading exchanges provided value to the extended supply chain over the course of the next decade. They were not a major factor in the evolution of supply chain processes. 

Let s start the discussion with definitions. When the supply chain is extended to a network of trading partners, it is termed a supply network. When the emphasis of this extended supply chain shifts from cost to value, it is called a value chain. When it becomes more strategic to the company, focused outside-in to drive value-based outcomes, it is termed a value network. 

Here we discuss the journey from extended supply chains to value networks. We start with the discussion of how to move from a cost to value and then share insights on how to use this focus to build the right relationships. We then share lessons from the pioneers. 

Supply chain processes are characterized by industry. The processes are very specific. As value chains are built, industries are coupled together to build extended supply chains. When industries focus on value-based outcomes, it is termed value networks. 

Preparing for risk in the extended supply chain is everybody s business. Established procedures, a control room or a control tower for visualization of global operations, and practiced drills are a necessity. This combination allows the organization to spring to action when a situation arises. 

In this process, companies quickly learn that although they can outsource their supply chain, they cannot outsource the risk or responsibility associated with the extended supply chain from the customer s customer to the supplier s supplier. It needs to happen by building the value network brick by brick. 

Building value-network effectiveness. In the extended supply chain, what should be the role of the corporate and regional teams In our organization, what does global mean What is the right structure for governance ... 

Extending supply chain considerations externally to all the other firms in the entire network presents a much more formidable challenge. 

Extended supply chain Has a supply chain mindset Managers developed in the supply chain role Good processes for new products and production of existing ones 2... 

This refers to a process by which a company manages all of the suppliers in the extended supply chain from raw materials through the buying... 

This model is normally associated with close collaborative ways of working and involves extensive supplier development work, throughout the supply chain to focus on process improvement and the eradication of all unnecessary waste and inefficiency (known as muda ). Its extension into the extended supply chain is based on notions of partnership sourcing and the development of extend transparency. 

As we discussed in Chapter 13, web-enabled technologies have now progressed to create e-supply chains. The market for managing the core ERP information (orders, inventory, etc.) of the extended supply chain is only now beginning to emerge in major projects as the following case example illustrates. 

The extended supply chain supported by e-supply chain network and CPFR systems can only be effective if the S OP process of the OEMs also include key suppliers and customers. The visibility and instant access of supply chain data and targets by stakeholders will only be more productive when the plans and their exceptions are reviewed and agreed as part of the S OP process. 

All Part of an Extended Supply Chain Sclieduling Actual Capacity (Labor, Materials, etc.)... 

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