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The Difference Between Value Chain and the Supply Chain

The Difference Between Value Chain and the Supply Chain

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Published by: ASIF RAFIQUE BHATTI on Dec 14, 2009
Copyright:Attribution Non-commercial


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The difference between value chainand the Supply Chain
The Value chain
The value chain is a systematicapproach to examining thedevelopment of competitiveadvantage.
The chain consists of a series of activities that create and buildvalue.
In order to run the value processthe organisation is split into'primary activities' and 'supportactivities.'
The value chain categorizes thegeneric value-adding activities of anorganization.
The value-chain concept has beenextended beyond individualorganizations. It can apply to wholesupply chains and distributionnetworks.
Six business functions of the ValueChain are
Research and DevelopmentDesign of Products, Services, or Processes Production Marketing &Sale Distribution Customer Service
The Supply Chain
Forecasting, purchasing, production planning,warehousing (in and out) anddistribution all used to be indifferent parts of theorganization.
The value chain is a part of thesupply chain
The supply chain concern withthe manufacturing of the product and its distribution

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