Bricks Matter

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.

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