Value Chain Analysis

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Uploaded by on Sep 22, 2009

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Education

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  • This clip seems to indicate that Supply Chain Management systems are limited to the first three core activities in the Value Chain - namely - Inbound Logistics, Operations, and Outbound Logistics.

    Look - I'm far from an expert - but doesn't traditional Supply Chain Management span the entire spectrum of processes - starting from Raw Materials - all the way to Consumption inclusive of any and all processes in between?

    I loved the clip - but I'm a drop confused.. Thanks!

  • @elmerfudd898 Good question. In general, we think about the supply chain as a series of systems that are used to take raw materials and by adding value in the manufacturing and packaging process turn them into finished goods ready to sell. There are feedback loops that connect the Marketing and Selling and the Aftersales Support back to Inbound logistics (eg. raw material defects) or to Operations (eg. manufacturing defects) which might make it seem like a complete system.

  • song name?

  • The song was recorded by my son-in-law, a jazz guitarist, but I'm not sure what it is called.

  • can you explain relationship between firm and buyer value chain in detail please.

  • I'm not sure I can go into a ton of detail here, but the important idea is that we have to see each firm as part of a larger value chain. The products produced and sold by one firm are often thought of as raw materials that are in inbound logistics in another firm. This can occur through many value chains, even including recycling the product after its intended use. Some say that value, like matter, is never destroyed, it's just transfered from one use to another.

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  • @elmerfudd898 Absolutely they do. Value chain analysis starts with reducing businesses down to their core elements and functions. THis includes evaluating the supply chains of the businesses that provide inputs in addition to the buyer value chain which captures how the buyers will use the products or services of the company. However, these two value chains can only be inferred as opposed to analyzed since the company only has knowledge first hand of its own operations. But they are considered.

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