Systems and Value
Supply chain systems configure value for those that organize the networks. Value is the additional revenue over and above the costs of building the network. Co-creating value and sharing the benefits appropriately to encourage effective participation is a key challenge for any supply system. Tony Hines defines value as follows: “Ultimately it is the customer who pays the price for service delivered that confirms value and not the producer who simply adds cost until that point”
Read more about this topic: Supply Chain Management
Famous quotes containing the word systems:
“What is most original in a man’s nature is often that which is most desperate. Thus new systems are forced on the world by men who simply cannot bear the pain of living with what is. Creators care nothing for their systems except that they be unique. If Hitler had been born in Nazi Germany he wouldn’t have been content to enjoy the atmosphere.”
—Leonard Cohen (b. 1934)