Supply chains are principally about sourcing, making, and delivering. But the greatest supply chains, the ones that are a direct source of strategic value to the business, are also value networks. Lora Cecere writes for Forbes about why extending the supply chain and building it into a value network is sadly not as simple as connecting Legos, but it is still doable.
Fortifying the Network
Of 80 manufacturers in a study Cecere has conducted, 32% of manufacturing and 42% of logistics are outsourced, roughly double the numbers of a decade ago. Most companies today make a primary investment in enterprise resource planning (ERP) software, but they do so without realizing that the ERP of one organization will not magically connect with the ERP of other organizations. IT needs to be empowered and well-resourced so that it may ensure ERP will live up to what the business wants it to be. When clear definitions are in place during planning and ERP is stabilized, the supply chain can begin its transformation into a value network. Check out the original article here: http://www.forbes.com/sites/loracecere/2014/01/27/building-the-extended-supply-chain-if-only-it-was-like-legos/