Value chain design and implementation is finally emerging as the key source of competitive advantage at both the firm and industry level. Value chain assessment requires a complete picture of how value is added along the whole supply chain from sourcing and production through distribution to processing, wholesaling and retaining. It takes into account surrounding costs and competitive factors when considering individual business enterprises and their sustainability.
Supply Chain Management solutions tend to be categorized as either process oriented or transaction oriented. The process oriented solutions view the whole design of the supply chain as a highly flexible system and that superior supply chain management is best focused on process planning to take advantage of new technologies [an important one of which is radio frequency identification (RFID)], new work practices, new markets and changing client preferences.
In contrast, the transaction approach tends to focus more on reducing costs or increasing value from an existing supply chain by collecting, analyzing and sharing information across all supply chain activities with the aim of improving coordination through what is termed Enterprise Resource Planning (ERP). Client Relationship Management (CRM), gives more attention to intangibles such as keeping clients satisfied, all the time. In reality these competing categories are not so different.
What can we do to build an internationally competitive value chain?
● Help create a value chain awareness culture and priority for leaders and operational staff.
● Develop you value chain structure and management into a source of competitive advantage.
● Identify, prepare and design an internationally competitive value chain.
● Create value chain maps and associated activity based costs for decision making.
● Focus on value chain definition and systems to facilitate execution.
Our approach to value chains
- Plan. Start with a strategy for managing the resources needed to meet your client’s requirements.
- Source. Select suppliers or combinations of suppliers that can meet client requirements in the most cost effective way with international quality standards.
- Process. Schedule all those activities necessary for production, quality control, testing, packaging and preparing for delivery.
- Deliver. In the most efficient way possible with expert logistics.
- Return of defective goods and management of client relationships.
- ROI. The bottom line is achieving a competitive return on investments in improved supply chain management systems.
Value chain examples
● Risk management practices along value chains. www.nccarf.edu.au/publications/food-security-risk-management-and-climate-change
● More than 20 years of value chain design, mapping and development with government, industry and private companies and cooperatives.
● Carbon footprint mapping along supply chains
● Activity based cost maps for value chains.
● Development of value chain policies for government, industry and companies.
Interesting links for value chains