Supply Chain equals Value Chain

Idea / Strategy

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Supply Chain equals Value Chain
Gary Stead, Member, Director, United Kingdom

Supply Chain configuration can determine a company's value

When we manage supply chains we are dealing with inputs and ouptuts.
Inputs are customer demands, manufactured or sourced materials, products and services, suppliers' contributions and own company resources. The world of supply chain is about making trade-offs amongst these resources against competing capacities, capabilities and demands.
We can measure outputs in terms of effectiveness in fulfiling against these inputs - typically enterprise wide KPIs.
We can wrap a financial framework around the fulfilment activities measured - so we approximate a model of the enterprise value chain.
How can CEO's benefit from this model?
Surely the insights revealed provide an ideal framework to strategicaly re-engineer the enterprise? Scenario analysis of available actions against this supply chain configuration can dramatically alter the value chain to benefit top and bottom lines.
How well do companies do this?

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