By Enver Yücesan
Competitive offer Chains uniquely specializes in eu and Asian businesses, that have came across leading edge methods of orchestrating potent structures. This new version builds upon the information explored via the writer in aggressive offer Chains (2007), that includes new content material and analysis.
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Additional info for Competitive Supply Chains: A Value-Based Management Perspective
While one cannot (and should not) ignore costs, we believe that an exclusive focus on cost minimization is a myopic perspective, which may cause the organization to miss many promising opportunities. com/ mgi. Copyright (c) McKinsey & Company. All rights reserved. Reprinted by permission. 3 Global technologies and innovators NOTE: Calculations compiled bottom up from all two-digit ISIC manufacturing industries from IHS Global Insight, excluding (D37) Recycling, as well as 75 of the largest economies, of which 28 are advanced and 47 are developing.
Supply chain professionals should therefore monitor their industry clockspeed closely and be ready to generate alternative solutions as industry structures evolve. In other words, they should view supply chain design as a dynamic process. This “race with no finish line” perspective is consistent with our earlier definition ∞ VALUE = ∑ t =0 FCFt (1 + OCC )t . 6 Product life cycle compression: 1988–1995 (Mendelson and Pillai 1999) The challenge in value creation is to consistently generate free cash flow indefinitely into the future, which is only possible by regularly redesigning one’s business model, including the product, the process, and the supply chain.
Similar transformations are observed in the pharmaceutical industry, where every stage of the pharmaceutical supply chain, research, development, clinical trials, manufacturing, distribution, and sales may now be outsourced to a specialty service provider. This phenomenon is discussed in further detail in Chapter 5. What drives the pace of change—or the clockspeed—in an industry? Some drivers are quite obvious: competition, technology, and power structure in the channel. Others may be less so: organizational culture, government regulations, globalization, and economic conditions.