“SUPPLY CHAIN AND THE VALUE

DELIVERING NETWORK”
Course Instructor : Sir Hasnain
Name : Sofia
Semester : BBA II
Department : Management Sciences
Course Title : Principles of Marketing
SUPPLY CHAIN AND THE VALUE
DELIVERY NETWORK:
The term supply chain refers to “make and sell”, this view includes the elements
such as firm’s raw material, productive inputs (control), and factory capacity.

Demand Chain, which refers to sense and respond, this view suggests that planning
starts with the needs of the target customer, and the firm responds to these needs
by organizing a chain of resources and activities with sole goal of creating customer
value.
SUPPLY CHAIN PARTNERS:

Upstream Partners: This includes raw material, suppliers, component partners, parts,
information, finances, and expertise to create a product or service.

Downstream Partners:
This includes that marketing channels or distribution channels that look toward the
customer.

Value Delivery Network?

It includes firm’s suppliers, distributors, and ultimately the customers, who partner
with each other tom improve the performance of the entire system.
What is Value Delivery Network?

Value delivery network is a part of supply chain of a company

and includes all its direct participants involved in production,
distribution, marketing, customer service, etc. for given
geographical area.
It a chain of system where after each system more a more
value is added to the product or services thereby increasing its
overall value for the customer.
Each system is partnering with other system to provide better
value to the customer. Production system uses feedback sales
history to produce the right product in required quantity. The
value created through such partnering depends upon the
quality of relationship between the systems .
Marketing Channel Defined:

A marketing channel (or distribution channel) is a set of independent organizations that

help make a product or service available for use or consumption by the consumer or
business users.
How Channel Members Add Value:

Information: Gathering and distributing marketing research and intelligence

Promotion: Development and spreading persuasive communications about an
offer
Contact: Finding and communicating with prospective buyers
Matching: Shaping and fitting the offer to the buyer’s needs, including activities
such as manufacturing, grading, assembling, and packaging
Negotiation: Reaching an agreement on price and other terms of the offer so
that ownership or possession can be transferred
Physical distribution: Transporting and storing goods
Financing: Acquiring and using funds to cover the costs of carrying out the
channel work
Risk taking: Assuming the risks of carrying out the channel work