Value Chain Management versus Supply Chain Management?

Value Chain (Porter)
Knowledge Center


Next Topic

Value Chain (Porter) > Forum > Value Chain Management versus Supply Chain Management?

Value Chain Management versus Supply Chain Management?
What is the relationship between Supply Chain Management and Value Chain Management? How are they interdependent?

Value Chain and Supply Chain
The value chain of an individual company is normally part of the total supply chain of value-creating activities.
While Porter's value chain concept decomposes all activities of one firm into its parts and analyses each individual activity and their interdepencies, the supply chain concept tries to optimize the supply system as a whole by taking into account the interdependencies between the activities in multiple firms.

Value System
A firm's value chain is embedded in a larger stream of activities that Porter terms the Value System. This value system comprises the Supplier Value Chains, the Firm Value Chains, Channel Value Chains and Buyer Value Chains.
Gaining and sustaining competitive advantage depends on understanding not only a firm's value chain but how the firm fits in the overall value system.

Value Chain and SCM Emphasis
RAUL BALDACCI, Manager, Argentina, Member
But the emphasis should always be on the customer for both perspectives.

Supply Chain Analysis does not stop at company borders
Improvements of the overall supply (value) chain may result from either inside the company or from linking the activities among the firms (suppliers, buyers, customers, partners, etc.) in an effective way.

Value Chain driver of SCM
Remember that value chain is the driver behind the SCM discipline - its main motivator.

Value Chain is the Value Creation Model, SCM is an Information System Tool
Value Chain is focusing on analyzing and designing the model for how the value is created.
SCM is an overarching approach including information systems for managing the relationships among the buyers, suppliers, distributors, retailers. 11-8-2019

Special Interest Group Leader

Interested? Sign up for free.

Value Chain (Porter)
Best Practices

Value Chain (Porter)
Knowledge Center


Next Topic

About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2019 12manage - The Executive Fast Track. V15.1 - Last updated: 19-8-2019. All names of their owners.