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The difference between value chain

and the Supply Chain


The Value chain The Supply Chain

⇒ The value chain is a systematic ⇒ Forecasting, purchasing,


approach to examining the production planning,
development of competitive warehousing (in and out) and
advantage. distribution all used to be in
different parts of the
⇒ The chain consists of a series of organization.
activities that create and build
value. ⇒ The value chain is a part of the
supply chain
⇒ In order to run the value process
the organisation is split into ⇒ The supply chain concern with
'primary activities' and 'support the manufacturing of the
activities.' product and its distribution

⇒ The value chain categorizes the ⇒


generic value-adding activities of an
organization.

⇒ The value-chain concept has been


extended beyond individual
organizations. It can apply to whole
supply chains and distribution
networks.

⇒ Six business functions of the Value


Chain are Research and Development
Design of Products, Services, or
Processes Production Marketing &
Sale Distribution Customer Service

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