Supply Chain Metrics that Matter

LORA M. CECERE is the founder of the research firm Supply Chain Insights. She is the author of the enterprise software blog Supply Chain Shaman, which attracts 5,000 readers weekly. She also writes a blog for Forbes and is a LinkedIn Influencer. Currently, Lora's research focuses on supply chain sensing and revenue management. Her supply chain experience includes specialist roles at AMR Research, Clorox, Gartner Group, Kraft, and Procter & Gamble.

• Foreword xiPreface xvAcknowledgments xviiChapter 1: Starting the Journey 1Meet Joe 4Setting Metrics Targets 5The Journey 6Agility 37Evolution 40Conclusion 42Notes 43Chapter 2: Managing Metrics on the Effective Frontier 45The Connection of Metrics to the Business Strategy 46Managing Metrics as a Complex System 49Using the Metrics Maturity Model to Drive Change 52Aligning on Asset Strategies 81Managing Change 85Conclusion 87Notes 88Chapter 3: Using Value Network Strategies to Move to the Next Level on the Frontier 89Managing What You Can’t Control 90Building the Guiding Coalition 132Educating the Organization to Take the First Step 133Conclusion 139Notes 139Chapter 4: A Strategy Session on Managing Value Networks 141Addressing Organizational Tensions 142The Strategy Day 154The Journey: Becoming Market-Driven 169Risk Management: A Catalyst for Driving Balance and Resiliency? 171Can Corporate Social Responsibility Be an Impetus to Drive Alignment and Build Market-Driven Value Networks? 176Sales and Operations Planning to Drive Balance and Resiliency 180Moving to the Next Level of the Effective Frontier 186Conclusion 188Notes 188Chapter 5: What Drives Value in the Value Network?: Industry Progress in Consumer Value Chains 189The Questions 190Leveling the Playing Field 193The Supply Chain Index 195The Consumer Value Chain Journey 196Wrapping Up the Strategy Workshop 235Conclusion 237Notes 237Chapter 6: What Drives Value in the Value Network?: Industry Progress in the Health-Care Value Chain 239What Is Value? 242Who Is the Customer? 248Where Are We Headed? 250The Health-Care Value Chain 253Hospitals 259Pharmaceutical Industry 267Medical Device Manufacturers 278Conclusion 283Notes 284Chapter 7: What Drives Value in the Value Network?: Industry Progress in the Industrial Value Chain 285Understanding the Industrial Value Network 296High-Tech and Electronics 300Semiconductor Industry 310Conclusion 320Notes 321Chapter 8: What Drives Value in the Value Network?: Industry Progress in the Automotive Value Chain 323Automotive Progress on the Index 325Review of the Automotive Industry 329Moving Forward with Project Orbit 346Notes 350Chapter 9: The Smoke Clears 351Reflections 353Joe’s Story 354Reflections 363Appendix: The Methodology 365About the Author 371Index 373

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