ABSTRACT

This chapter extends the discussion of product types and customer value described in Chapter 11. Specifically, the discussion here builds on the argument that adding value to retail customers and end-users can best be done with supply chains tailored to specific market needs. This means that a retailer, distributor, or manufacturer may need more than one supply chain. Although having multiple supply chains is not the case in most companies now, the authors predict that multiple supply chains will become the norm for all but the simplest of businesses. For any trading partner-retail store chain, distributor, manufacturer, service provider, or parts supplier-there is likely to be a need for parallel processes for physical, information, or financial flows. Some will say that this is what distribution “channels” are, but the concept we discuss goes beyond channels. As described later, multiple supply chains do not necessarily require costly duplication of physical plant, working capital, or workers.