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11.1 Introduction

We have seen in our previous discussions that the supply chain management philosophy is based on the concept of creating superior customer value. We identified that, in terms of the more obvious supply chain activities, this value to the customers would be more apparent in the forms of cost and/or service. While these philosophies and observations remain the basic parameters of 'value' in supply chain management, a more elaborate discussion of this concept is warranted. In this chapter we will look into the concept of value and will endeavour to see how supply chain management is evolving to give shape to this extended concept of value. We will look at the concepts of metrics used in supply chains and the role of information technology in the process of this value creation.

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