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More About This Title Bricks Matter: The Role of Supply Chains in Building Market-Driven Differentiation
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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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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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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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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
