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Why Are Value Networks So Hard to Build

The evolution of supply chain management practices to build effective networks is slow. It is painful and often not well understood. [Pg.80]

Supply chains are complex. Today, companies span more markets. The need for market-segmentation is increasing. Companies [Pg.80]

In parallel, companies have become more dependent on third-party trading relationships. Outsourced manufacturing and logistics are today s reality. Companies today find that they need to plan globally to execute locally across a diverse network bidirectionally yet, the functional leaders are not incented to build value networks. To effectively plan, companies need to value the important, but the metrics reward the urgent. [Pg.81]

Leaders look at the problem and wonder, Why isn t it easier Supply chain collaboration to build the most effective end-to-end value network sounds simple, but it has not happened effectively. Why There are some basic problems  [Pg.81]

We live in a world where supply chains, not companies, compete for market dominance. But companies often have diverging incentives and interests from their supply chain partners, so when they [Pg.82]


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