What is referred to as the set of activities that add value to the product or service?
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Supply Chain is the interconnection of all the functions that starts from the manufacturing of raw material into the finished product and ends when the product reaches the final customer. Value Chain, on the other hand, is a set of activities that focuses on creating or adding value to the product. These two networks help to provide quality products to the customer at a reasonable price. Most of the time supply chain is juxtaposed with the value chain. In this article, we have compiled all the substantial differences between supply chain and value chain. Have a look. Content: Supply Chain Vs Value Chain
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Definition of Supply ChainSupply Chain is a connection of all the parties, resources, businesses and activities involved in the marketing or distribution through which a product reaches the end user. It creates a link between the channel partners like suppliers, manufacturers, wholesalers, distributors, retailers, and the customer. To put simply, it encompasses the flow and storage of the raw material; semi-finished goods and the finished goods from point of origin to its final destination i.e. consumption. The process which plans and controls the supply chain operations is known as Supply Chain Management. It is a cross-functional system that manages the movement of raw material, within the organization and the movement of finished goods out of the firm along with full customer satisfaction side by side. The following activities are included in the supply chain:
Definition of Value ChainValue Chain refers to the range of activities that adds value at every single step in designing, producing, and delivering a quality product to the customer. Value Chain Analysis is used to evaluate the activities within and around the organization and relating to its ability to provide value for money, goods, and services. The concept of Value Chain Analysis was first evolved by Michael Porter in 1985 in his renowned book “Competitive Advantage”. In his opinion, two major steps involved in the value chain analysis are:
Porter split business activities into two main categories, for the purpose of Value Chain Analysis:
The following are the major differences between supply chain and value chain:
ConclusionSupply Chain is described as a tool of business transformation, which minimizes costs and maximizes customer satisfaction by providing the right product at the right time at the right place and the right price. Conversely, Value Chain is a way of getting a competitive advantage, through which a company can beat its competitors along with fulfilling customer requirements. What is set of activities that add value to products?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.
What are value activities?A value-added activity is any action taken that increases the benefit of a good or service to a customer. A business can vastly increase its profitability by recognizing which activities increase value and which do not, and stripping away the non value-added activities.
What methods can be used to add value?7 Ways To Add Massive Value To Your Business. The Faster The Better. The first way to increase value is simply to increase the speed you deliver the kind of value people are willing to pay for. ... . Offer Better Quality. ... . Add Value. ... . Increase Convenience. ... . Improve Customer Service. ... . Changing Lifestyles. ... . Offer Planned Discounts.. What do you call the activities that maintain and enhance the value of the product such as customer care and warranty package?Service: Activities that maintain and enhance a product's value, such as customer support and warranty service.
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