CHAPTER 4

Managing Supply

The enemy of a good plan is the dream of a perfect plan.

—Carl von Clausewitz1

The end-to-end supply chain has two major components: supply and demand. Spanning both is operations. While both supply and demand must be integrated, planned for, and strategized in a holistic fashion, each necessitates different skill sets, perspectives, and strategies. While the supply chain must be directed at demand (after all, the customer pays the bills), it must also be supply-aware—it is the supply that drives policy (and reversely, it is increasingly being driven by policy), garners headlines, encompasses a lot of the risk, and contains the largest portion of the costs. While the jargon of the day is the “demand-driven” supply chain, ...

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