Supply chain strategy value networks

The questions surrounding outsourcing and the building of strategic relationships through value networks are answered in the development of the supply chain strategy. This is easier said than done. It is ongoing. Most supply chains are complex. 

Value networks do not just happen. Extending the supply chain outward from the enterprise through strategic relationships is an integral piece of the supply chain strategy. It takes time. It is a staged progression. Concentrated effort and a shared vision are essential. Network orchestration is critical. 

To extend the supply chain from an internal to an external focus requires skills, incentives, resources, planning, and leadership. There are many stops and starts. Relationships need to be treated differently based on importance, capabilities, and strategic alignment. Before companies can build successful value networks, they have to be clear on what determines value in the supply chain strategy. 

The greatest and most lasting impact on value happens when they converge and support the supply chain strategy. We find that supply chain leaders are often good at all three types, while supply chain laggards have not begun to define these critical network relationships. 

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