DISCUSS THE VALUE/SUPPLY

CHAIN IN RELATION TO THE

BUSINESS ENTERPRISE
THE VALUE/SUPPLY CHAIN IN RELATION TO THE BUSINESS
ENTERPRISE

• Supply Chain Management can be

described as the managing and
distributing the goods and services that
starts with the origin of the goods and
ends with the consumption of the
commodity.
This also involves the transportation and
storing of raw materials used in research in
progress,procument, and professionally
finished items.The main objective of supply
chain management is to monitor and link the
production,distribution and delivery of
products and services. That can be
achieved by businesses with a really strong
and secure control on internal
inventories,manufacturing,delivery,local
development and sales.
 VALUE CHAIN VERSUS SUPPLY CHAIN MANAGEMENT

VALUE CHAIN
• A value chain is a set of activities that firm operating in a specific
industry performs in order to deliver a valuable products or services
for the market.
• Value chain is MICRO, in the sense that it is done at company level
• a value chain is a set of interrelated activities a company uses to
create competitive advantage.
• The idea of a value chain was poineered by American academic
Michael Porter in his 1985 book ''Competitive Advantage: Creating
and Sustaining Superior Performance."
 SUPPLY CHAIN MANAGEMENT

• Supply chain management (SCM), is the management of the flow of

goods and services, involves the movement and storage of raw
materials, of work-in process inventory, and of finished goods from
point of origin to point of consumption

• Supply chain management is MACRO, in the sense that it invovles

all different stakeholders and not only at company level

• A supply chain involves all parties in fulfilling a customer request

and leading to customer satisfaction.
Eingt Key-Processes of Supply Management
• 1.Customer Relationship Management (CRM) would allow client segments
depending on the long-term importance of each category to the business or the
supply.
• 2. Customer Service Management it is a multi-business, centralized
communication network for clients,complaints, queries, and feedback.
• 3. Demand Management The method aims to coodinate supply and demand through
the whole value chain by identifying consumer needs and implementing an action
plan in anticipation of the actual customer purches.
• 4. Order-fulfillment This includes making, carrying out, distributing and servicing
consumer orders with on-the-spot support.
• 5.Manufacturing Flow Management it means that the tools required to flexibly
manufacturing cycle are available for companies in the supply chain.
• 6. Supplier Relationship Management This offers institutional help, in particular to
high-value vendors, for establishing and sustained strong relationship to benefit from
production gains.
• 7. Product Development and Commercialization it promotes collaborative
production and promotion between supply chain member of organizations with
onnovative goods and services
• 8. Return Management This allows businesses to better control quantities of the
inventory recovered while reducing associated costs.