The Value/Supply Chain
in relation to Business
Entreprises
Presented By : Group 2
Value Chain
A value chain is a series of consecutive steps that
go into the creation of a finished product, from its
initial design to its arrival at a customer's door.
The chain identifies each step in the process at
which value is added, including the sourcing,
manufacturing, and marketing stages of its
production.
Value Chain
A company conducts a value-chain analysis by
evaluating the detailed procedures involved in
each step of its business. The purpose of a value-
chain analysis is to increase production
efficiency so that a company can deliver
maximum value for the least possible cost.
Components of a
Value Chain
• Primary Activities
• Support Activities
PRIMARY ACTIVITIES
INBOUND OPERATIONS OUTBOUND
LOGISTICS LOGISTICS
• include
• include • include
procedures for
functions like activities to
converting raw
receiving, distribute a
materials into a
warehousing, final product to
finished
and managing a consumer.
product.
inventory.
PRIMARY ACTIVITIES
MARKETING SERVICE
AND SALES.
• includes programs to
• include strategies to maintain products and
enhance visibility and enhance the consumer
target appropriate experience—like
customers—such as customer service,
advertising, promotion, maintenance, repair,
and pricing. refund, and exchange.
SUPPORT ACTIVITIES
TECHNOLOGICAL
PROCUREMENT DEVELOPMENT
• is used at a firm's research and
• concerns how development (R&D) stage—like
a company designing and developing
obtains raw manufacturing techniques and
materials. automating processes.
SUPPORT ACTIVITIES
HUMAN RESOURCES
INFRASTRUCTURE
(HR) MANAGEMENT
• involves hiring and • includes company systems
retaining employees who will and the composition of its
fulfill the firm's business management team—such as
strategy and help design, planning, accounting,
market, and sell the product. finance, and quality control.
SUPPLY CHAIN
A supply chain is the network of all the
individuals, organizations, resources, activities
and technology involved in the creation and sale of
a product. A supply chain encompasses everything
from the delivery of source materials from the
supplier to the manufacturer through to its
eventual delivery to the end user.
Steps in the Supply Chain
The fundamental steps of a supply chain
in order are as follows:
1. Sourcing raw materials.
2. Refining those materials into basic parts.
3. Combining those basic parts to create a product.
Steps in the Supply Chain
4. Order fulfillment/Sales.
5. Product delivery.
6. Customer support and return services.
SUPPLY CHAIN
vs
VALUE CHAIN
Supply Chain
Management
Supply Chain Management (SCM) is the
oversight of materials, information and
finances as they move in a process from
supplier to manufacturer to wholesaler to
retailer and then to the consumer.
What are the
MAIN
SUPPLY CHAIN
MODELS?
Continuous -
Flow Model
This traditional supply chain
model works well for
companies that produce the
same products with little
variation. The products
should be in high demand and
require little to no redesign.
Fast - Chain
Model
This model works best for
companies that sell products
based on the latest trends.
Businesses that use this
model need to get their
products to market quickly to
take advantage of the
prevailing trend.
Flexible Model
Companies that manufacture
seasonal or holiday
merchandise often use the
flexible model. These
companies experience surges
in demand for their products
followed by long periods of
little to no demand.
What are
SUPPLY CHAIN
MANAGEMENT
BEST PRACTICES?
• They support
continuous
improvement.
• They aim for
increased
velocity.
• They encourage
collaboration among
the individual
businesses in the
supply chain.
• They seek new
technologies that
improve their
processes.
• They have metrics in
place that allow
employees to measure
the success or failure of
each step in the supply
chain.
QUIZ!
1. A series of consecutive steps that go into
the creation of a finished product.
A. Supply Chain
B. Supply Chain Management
C. Value Chain
D. Primary Activities
2. It is the network of all individuals,
organizations, resources, activities and
technology involved in the creation and
sale of a product.
A. Supply chain
B. Value Chain
C. Supply Chain Management
D. Primary activities
3. It is the oversight of the materials,
information and finances as they move
in a process from supplier to
manufacturer.
A. Supply chain
B. Value Chain
C. Supply Chain Management
D. Support activities
4-5. Give the Two
Components of Value
Chain
6-8. Give the 3
models of Supply
Chain
9-15. Give the 7C's
that you should
consider to find the
good qualifications
of an employee
