Building Value Chain Capabilities

by Wendell Jones

Companies are building and sustaining cooperative supplier relationships with the aim of developing stronger value chain capabilities. Success depends on a number of key managerial decisions and actions: motivating all managers to commit to and support the organizational change process; building value chain competencies; creating a supportive organizational culture; evaluating which noncritical functions should and should not be candidates for cooperative relationships; and deciding if an alliance, partnership, or outsourcing arrangement is the best way to go.

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Building Value Chain Capabilities January 2003