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Handbook Value Chain Research

Handbook Value Chain Research

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Published by winston

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Categories:Types, Research
Published by: winston on Apr 14, 2009
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08/01/2012

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In the real world, of course, value chains are much more complex than this. For one
thing, there tend to be many more links in the chain. Take, for example, the case of
the furniture industry (Figure 2). This involves the provision of seed inputs,
chemicals, equipment and water for the forestry sector. Cut logs pass to the sawmill
sector which gets its primary inputs from the machinery sector. From there, sawn
timber moves to the furniture manufacturers who, in turn, obtain inputs from the
machinery, adhesives and paint industries and also draw on design and branding skills
from the service sector. Depending on which market is served, the furniture then
passes through various intermediary stages until it reaches the final customer, who
after use, consigns the furniture for recycling.

Design
and
product
develop
ment

Production

-Inward logistics
-Transforming
- Inputs
- Packaging
- Etc

Marketing

Consumption/
recycling

5

PART 1: BASIC DEFINITIONS AND CONCEPTS

Figure 2: The forestry, timber and furniture value chain

Forestry

Sawmills

Machinery

Water

Machinery

Seeds

Chemicals

Furniture
manufacturers

Design

Logistics,
quality
advice

Machinery

Paint, adhesives,
upholstery etc.

Buyers

Domestic
wholesale

Foreign wholesale

Domestic retail

Foreign retail

Consumers

Recycling

Extension
services

6

PART 1: BASIC DEFINITIONS AND CONCEPTS

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