+VALUE CHAIN AND SUPPLY CHAIN

VALUE CHAIN

The value chain refers to the process in which a business receives raw materials, adds value to them
through production, manufacturing and other processes to create a finished product, and then sells
the finished product to consumers.

Steps or activities in a value chain

1. Inbound Logistics: Receiving, warehousing, and inventory control.

2. Operations: Value-creating activities that transform inputs into products, such as
assembly and manufacturing.
3. Outbound Logistics: Activities required to get a finished product to a customer.
These include warehousing, inventory management, order fulfillment, and shipping.
4. Marketing and Sales: Activities associated with getting a buyer to purchase a
product.
5. Service: Activities that maintain and enhance a product's value, such as customer
support and warranty service.

SUPPLY CHAIN

A supply chain is a network of individuals and companies who are involved in creating a
product and delivering it to the consumer. Links on the chain begin with the producers
of the raw materials and end when the van delivers the finished product to the end
user.

• A supply chain is a network of companies and people that are involved in the
production and delivery of a product or service.
• The components of a supply chain include producers, vendors, warehouses,
transportation companies, distribution centers, and retailers.
• The functions of a supply chain include: product development, marketing,
operations, distribution, finance, and customer service.

A supply chain involves all parties in fulfilling a customer request and leading to customer
satisfaction, a value chain is a set of interrelated activities a company uses to create
a competitive advantage.

Value chain vs supply chain

https://youtu.be/MC_hByD8nBY?si=geVnQM07s8uLPYq9

https://youtu.be/1qh6_K3_QPM?si=v-wxaGagHyA5F_ps