Bricks Matter

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 the principal industry consultant for the manufacturing and supply chain global practice at SAS. 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.

• Foreword xiPreface xvChapter 1 Why Bricks Matter 1Implications 6Building the Right Bricks 7A Look at History 13Supply Chain Pioneers: The Tipping Points 13Meet the Pioneers 20Why It Matters 25Supply Chain Process Evolution 30Who Does Supply Chain Best? 41Meet the Supply Chain Leaders 45Procter & Gamble: The Quiet Leader 46Apple and Dell: Inventing New Models 52Summary 56Notes 57Chapter 2 Building Value Networks 59The Journey from Cost to Value 60Aligning for Success 66Building of Value Networks 72Building Value Networks 77Why are Value Networks So Hard to Build? 80A Close-up: Taking a Closer Look at a Value Network within the Consumer Value Chain 83Value Chain Case Studies 89Success in Creating Value in Value Networks 89Mistakes in Building Value Chain Networks 94Risk Management 100Shift to Value-based Outcomes 102Summary 106Notes 106Chapter 3 The New World of Demand Management: Demand Sensing, Shaping, and Translation 107What is Demand Management? 109Learning a New Language to Build Market-Driven Demand Management Processes 110What is Market-Driven Demand Management? 111What is Demand Sensing? 121What is Demand Shaping? 123Achieving Market-Driven Capabilities 127Why is Becoming Market Driven Important for Industrial Companies? 133Driving the Market-Driven Demand Management Advantage 134Social: A New Form of Demand Signal 136How Can a Company Improve Demand Management? 142Summary 143Notes 144Chapter 4 Supply Management Evolution 145Current State 147Supply Chain Matters 151Procurement of Raw Materials 154Manufacturing: The Making of Products 161Transforming Manufacturing 165Logistics 181Summary 193Notes 195Chapter 5 Building Horizontal Connectors 197The Building of Horizontal Supply Chain Processes 201Revenue Management 205Sales and Operations Planning 212Supplier Development 226Summary 241Notes 241Chapter 6 Supply Chain 2020 243Leading the Journey to Drive Market-Driven Value Networks 244Building a Guiding Coalition 256Running the Race 260Making the Right Investments 267Supply Chain 2020 268Demand Orchestration 280Big Data Supply Chains 281Winning the Race 286Notes 288About the Authors 289Index 291