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Value Creation: Dynamic Supply Chain Design

In: Competitive Supply Chains

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  • Enver Yücesan

    (INSEAD)

Abstract

The challenge in value creation is to consistently generate free cash flow, which is only possible by regularly redesigning one’s business model, including the product, the process, and the supply chain. Supply chain design, the capability to design and assemble assets, organizations, skill sets, and competencies for a series of competitive advantages—rather than a set of activities held together by low transaction costs—has two main pillars: capacity design and capability design. Capacity design is concerned with the configuration of a supply network, that is, the deployment of a portfolio of assets, which differ in size, type, timing, and location. In contrast, capability design is concerned with strategic issues of identifying and managing potential risks and opportunities for value creation in a sustainable fashion.

Suggested Citation

  • Enver Yücesan, 2023. "Value Creation: Dynamic Supply Chain Design," Springer Books, in: Competitive Supply Chains, edition 3, chapter 4, pages 41-86, Springer.
    • Handle: RePEc:spr:sprchp:978-3-031-19975-2_4
    DOI: 10.1007/978-3-031-19975-2_4
    as

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