Understand the value chain network, understand the market, understand the industry and understand the customer

Abstract

Supply chain management is under pressure as many organisations use it as a means of producing cash through cost-efficiency programmes (Walters and Rainbird: 2007). This paper discusses the increasing application of a value chain network approach, one that uses network management and the assumption that “customer centricity” replaces efficiency decisions with effectiveness decisions and in doing so results in improved marketing and financial performance. This paper uses examples from a wide range of organisations and industries to illustrate the increasing application of the concept.