At most companies, customers' needs are not high on the list of factors driving supply chain strategy. In this excerpt from his new book, Dr. J. Paul Dittmann of the University of Tennessee explains the potentially costly consequences of that policy.
Most companies treat all suppliers the same, and they respond too late to supplier-related risk. By segmenting their supply base and basing governance agreements on a supplier's role and importance in the supply chain, they could better anticipate and prevent disruption.
Offering bundled packages of products and services—a strategy known as "servitization"—provides greater value to the customer and can lead to more profitable relationships between manufacturer and customer. Here's how to develop a "servitized" supply chain that supports customer-segmented service.
Although collaboration offers many benefits for consumer goods manufacturers and retailers, too often their joint initiatives don't work out. To ensure success, partner companies should take these six actions together.
In this excerpt from the book Operations Rules: Delivering Customer Value through Flexible Operations, author David Simchi-Levi explains why unstable fuel prices should lead companies to rethink the way they manage inventory, production, customer service, and supply chain integration.