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A successful company typically starts with a deep understanding of customer needs in a segment and translates these needs into a value proposition. Then it develops its supply chain capability to deliver on its value proposition. Many companies have a clear and compelling customer value proposition but fail to reap the benefits because their supply chain capabilities are inadequate and their supply chains are not correctly linked to their customer value proposition. This paper uses examples in mass retailing to illustrate the link between value propositions and supply chains.
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