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suPPly nETWoRK dynAMiCs 185

Figure 5.13 Potential perception mismatches in supply chains

Market requirements
Market Market
perception Supply perception
gap choice gap
What A What B
thinks What B thinks What A
B wants wants A wants wants

Operations Operations
improvement gap improvement gap
Operation A Operation B Operation C
Supplier Supplier
improvement gap improvement gap

How A How B How B How C
thinks it is thinks A is thinks it is thinks B is
performing performing performing performing
Operations Supply Operations
performance development performance
gap gap
Operations performance

Table 5.3 understanding the qualitative dynamics of supply chains

Gaps Definition What it indicates Questions to ask
Supply choice The association between The significance of a What are the key competitive
what an operation believes supply arrangement for factors for our customers?
its customer wants and competitive success. Which of these rely on our
what it believes it needs supplier’s performance?
from its supplier.
Supply development The association between how The effectiveness of a What have been our
an operation views its own supplier arrangement on competitive successes and
performance and how it competitive success. failures?
views the performance of To what extent were our
its suppliers. competitive successes
and failures the result of
supplier performance?
The supplier improve- The gap between our view of Prioritisation for supplier What do we need from our
ment gap our own requirements and development. suppliers?
our view of our supplier’s What are we getting from
performance. our suppliers?
What are the main gaps?

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