TABLE OF CONTENTS The principles of supply chain management velocity, variability, vocalize, visualize and value are worthless unless their application results in significant competitive improvement in a network context. We expect these principles to simultaneously drive revenue growth, increased profitability, improved return on invested capital, and share price appreciation. The storyline, in this book, is about the journey of an internally focused, cost-driven organization striving to become an externally focused, throughput-driven network trading partner. We have not seen much improvement so far. Something else must be going on within this organization.
The core of each Chapter vignette is reproduced here sequentially. The story unfolds with an organization in shock. This shock is the unexpected loss of significant revenue and the stark realization that their value proposition is no longer working. The organization naturally turns inward, looking to save itself through consolidation and cost cutting. The organization wastes months of calendar time trying to get a grip. By now, it is apparent that key information has been left out of the description of this supply chain. This was done intentionally throughout the earlier Chapters to introduce each topic in a way that allows us to best identify our own business experience with the storyline. But in order to proceed to a conclusion, it is now necessary to describe the business in more detail. For example, we have insufficient information to answer the question: Does the loss of Colonial Distributor affect all or only some of the product lines?
The storyline is...
