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Bricks Matter: The Role of Supply Chains in Building Market-Driven Differentiation

ISBN: 978-1-118-21831-0
320 pages
December 2012
Bricks Matter: The Role of Supply Chains in Building Market-Driven Differentiation (1118218310) cover image
Get proven guidance to build a market-driven supply chain management system

Supply chain management processes have gradually shifted from a supply-driven focus to a demand-driven one in order to better synchronize demand and supply signals. Bricks Matter shows you how you can identify market risks and opportunities and translate these into winning tactics. Business cases highlight how business leaders are winning through market-driven approaches.

  • Helps you understand how to apply the emerging world of predictive analytics for the better management of value networks
  • Includes business cases illustrating the market-driven approach
  • Reveals how businesses can identify market risks and translate these into supply-side tactics

As companies transition from demand-driven to market-driven approach, the focus in organizations shifts from one of vertical excellence to building strong market-to-market horizontal processes. Improve revenue by increasing market share, improve profit margins, and maintain high levels of customer service with the indispensable guidance found in Bricks Matter.

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Foreword xi

Preface xv

Chapter 1 Why Bricks Matter 1

Implications 6

Building the Right Bricks 7

A Look at History 13

Supply Chain Pioneers: The Tipping Points 13

Meet the Pioneers 20

Why It Matters 25

Supply Chain Process Evolution 30

Who Does Supply Chain Best? 41

Meet the Supply Chain Leaders 45

Procter & Gamble: The Quiet Leader 46

Apple and Dell: Inventing New Models 52

Summary 56

Notes 57

Chapter 2 Building Value Networks 59

The Journey from Cost to Value 60

Aligning for Success 66

Building of Value Networks 72

Building Value Networks 77

Why Are Value Networks So Hard to Build? 80

A Close-up: Taking a Closer Look at a Value Network within the Consumer Value Chain 83

Value Chain Case Studies 89

Success in Creating Value in Value Networks 89

Mistakes in Building Value Chain Networks 94

Risk Management 100

Shift to Value-based Outcomes 102

Summary 106

Notes 106

Chapter 3 The New World of Demand Management: Demand Sensing, Shaping, and Translation 107

What Is Demand Management? 109

Learning a New Language to Build Market-Driven Demand Management Processes 110

What Is Market-Driven Demand Management? 111

What Is Demand Sensing? 121

What Is Demand Shaping? 123

Achieving Market-Driven Capabilities 127

Why Is Becoming Market Driven Important for Industrial Companies? 133

Driving the Market-Driven Demand Management Advantage 134

Social: A New Form of Demand Signal 136

How Can a Company Improve Demand Management? 142

Summary 143

Notes 144

Chapter 4 Supply Management Evolution 145

Current State 147

Supply Chain Matters 151

Procurement of Raw Materials 154

Manufacturing: The Making of Products 161

Transforming Manufacturing 165

Logistics 181

Summary 193

Notes 195

Chapter 5 Building Horizontal Connectors 197

The Building of Horizontal Supply Chain Processes 201

Revenue Management 205

Sales and Operations Planning 212

Supplier Development 226

Summary 241

Notes 241

Chapter 6 Supply Chain 2020 243

Leading the Journey to Drive Market-Driven

Value Networks 244

Building a Guiding Coalition 256

Running the Race 260

Making the Right Investments 267

Supply Chain 2020 268

Demand Orchestration 280

Big Data Supply Chains 281

Winning the Race 286

Notes 288

About the Authors 289

Index 291

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LORA M. CECERE is the founder of the research firm Supply Chain Insights, which is paving new directions in building thought-leading supply chain research. She is also the author of the enterprise software blog "Supply Chain Shaman." The blog focuses on the use of enterprise applications to drive supply chain excellence. As an enterprise strategist, Lora focuses on the changing face of enterprise technologies. With over forty years of diverse supply chain experience, Lora spent nine years as an industry analyst with Gartner Group, AMR Research, Inc., and Altimeter Group.

CHARLES W. CHASE Jr. is Chief Industry Consultant and Subject Matter Expert, SAS Institute Inc. He is the primary architect and strategist for delivering demand planning and forecasting solutions to improve supply chain efficiencies for SAS customers. He has more than twenty-six years of experience in the consumer packaged goods industry and is an expert in sales forecasting, market response modeling, econometrics, and supply chain management.

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Praise for Bricks Matter

"This book is like no other that has been written about supply chain management. It is a must-read for the supply chain leadership team."
Marty Kisliuk, Global Operations Director, Agricultural Products Group, FMC Corporation

"Lora Cecere has been a key driver of supply chain strategies that force companies to think differently about how they work with their customers, partners, and cross-functionally within their own organizations. Here she teaches us to take a bold step to change our thinking and turn the supply chain around to focus on the consumer."
Ann Dozier, Vice President, Fresh Dairy Direct IT, Dean Foods Company

"Today, the worlds of social business and supply chain management have many degrees of separation. I enjoyed working with Lora to understand what the future transformation of digital marketing to digital business could look like."
Jeremiah Owyang, Research Director, Altimeter

"The journey to build the outside-in, end-to-end value network happens in stages and can only be led from the top based on value-based outcomes. This is a guidebook for leaders driving the transformation."
Roddy Martin, industry thought leader

“This is the new bible for all supply chain executives. It provides an insider’s perspective that will prove incredibly valuable to even the most grizzled supply chain veteran. This is the next must-have business book.”
Bruce Richardson, Chief Enterprise Strategist, Salesforce.com

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