Building Market-Driven Value Networks

Market-to-market pressures and volatility have never been higher, yet companies have not redesigned their supply chain processes to absorb the impacts and improve resiliency. We believe that it is time to change supply chain processes.

In this report, we share the concepts of the market-driven value chain. Today, it is largely aspirational, but we feel that the concepts will shape the supply chain of the future. The definition of a market-driven value chain is:

Market-driven value networks are adaptive supply chains that can quickly align organizations market-to-market to focus on the delivery of a value-based outcome. They sense and translate market changes (buy- and sell-side markets) bidirectionally with near real-time data latency to better optimize and align sell, deliver, make and sourcing operations to the goal. The focus is on horizontal process orchestration.

This definition is in stark contrast to the supply chain definitions of the past; i.e., the right product at the right place and at the right time. In the journey to become market driven, the organization will face a number of change management issues. In this report, we tackle these directly.

We start the report by sharing why we think market-driven value networks matter. We do this by outlining current market drivers, detailing the progression of supply chain process evolution and listing the current gaps. We end with a recommendation of how to get started.

We realize that this is a journey, not a destination. It will take time and vision to actualize. We also understand that the journey for each company will look slightly different. The biggest obstacle in the path is change itself. Tackle it first and head-on. The first step is to build a guiding coalition. This report is designed to help you meet this goal.