SUPPLY CHAIN VS VALUE

CHAIN
“VALUE HAS A VALUE ONLY
IF ITS VALUE IS VALUED”
WHAT IS VALUE ?
 Porter defined value as:
“The amount buyers are willing to pay for what a firm provides”
 INTO THE DETAILS OF
EXAMPLE
Value is a subjective
Value occurs when needs are met.
DEFINING VALUE FROM THE
CUSTOMER’S PERSPECTIVE
KEY DISTINCTION IN
DEFINING VALUE

BUSINESS TO BUSINESS(B2B)
BUSINESS TO CONSUMER(B2C)
 B2B
Technical(Resource
Value)

Organizational(Business
Context)

Personal(Career and
idiosyncratic)
B2C
 VALUE CHAIN
The value chain concept was developed and
popularized in 1985 by Michael Porter

Effective value chains generate profits

9 GENERIC ACTIVITIES
 PICTORIAL
REPRESENTATION
OF VALUE CHAIN
 SUPPLY CHAIN
Supply chain is the integrated management of all the
linkages and value added activities from the supplier’s
supplier to the customer’s customer
 A BRIEF HISTORY
 Supply chain management emerged in the 1980s as a new
integrative philosophy to manage the total flow of goods from
suppliers to the ultimate user, and evolved to consider a broad
integration of business processes along the chain of supply.
PICTORIAL
REPRESENTATION
OF SUPPLY CHAIN
 SIMILARITIES & DIFFERENCES
BETWEEN
SUPPLY CHAIN & VALUE CHAIN
Supply chain and value chain are in common
parlance.

Supply chain – source to the customer, Value

chain - customer to the supplier.

 Supply chain – improves efficiency and

reduces waste, value chain- Creating values
 OPERATION ORIENTED ANALYSIS
FROM VALUE CHAIN PERSPECTIVE
 Increasing competition and an increasing
focus on innovation as an element of strategy

Evolving governance models for the extended

enterprise

Globalization of Supply and Production

Benefits already wrung out of manufacturing

and the supply chain

Trends in management discourse

 CONCLUSION
Value related to social and economic scenario
To eye on supply and value chain as two distinct
processes is folly.
Integration of supply chain and value chain
 THANK YOU
PRESENTED BY (IN SEQUENCE)
Vishnu Padmakumar
Sautik Samanta
Prakhar Saigal
Nitin Mishra
Sangram Keshari Nayak