Value chain in the context of "Suppliers"

⭐ In the context of Suppliers, a Value_chain is considered structured through a tiered system where suppliers are categorized based on…




⭐ Core Definition: Value chain

A value chain is a progression of activities that a business or firm performs in order to deliver goods and services of value to an end customer. The concept comes from the field of business management and was first described by Michael Porter in his 1985 best-seller, Competitive Advantage: Creating and Sustaining Superior Performance.

According to the OECD Secretary-General (Gurría 2012), the emergence of global value chains (GVCs) in the late 1990s provided a catalyst for accelerated change in the landscape of international investment and trade, with major, far-reaching consequences on governments as well as enterprises (Gurría 2012).

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👉 Value chain in the context of Suppliers

A supply chain is a complex logistics system that consists of facilities that convert raw materials into finished products and distribute them to end consumers or end customers, while supply chain management deals with the flow of goods in distribution channels within the supply chain in the most efficient manner.

In sophisticated supply chain systems, used products may re-enter the supply chain at any point where residual value is recyclable. Supply chains link value chains. Suppliers in a supply chain are often ranked by "tier", with first-tier suppliers (also called "direct suppliers") supplying directly to the client, second-tier suppliers supplying to the first tier, and so on.

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In this Dossier

Value chain in the context of Distribution (business)

Distribution is the process of making a product or service available for the consumer or business user who needs it, and a distributor is a business involved in the distribution stage of the value chain. Distribution can be done directly by the producer or service provider or by using indirect channels with distributors or intermediaries. Distribution (or place) is one of the four elements of the marketing mix: the other three elements being product, pricing, and promotion.

Decisions about distribution need to be taken in line with a company's overall strategic vision and mission. Developing a coherent distribution plan is a central component of strategic planning. At the strategic level, as well as deciding whether to distribute directly or via a distribution network, there are three broad approaches to distribution, namely mass, selective and exclusive distribution. The number and type of intermediaries selected largely depends on the strategic approach. The overall distribution channel should add value to the consumer.

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Value chain in the context of Life-cycle assessment

Life cycle assessment (LCA), also known as life cycle analysis, is a methodology for assessing the impacts associated with all the stages of the life cycle of a commercial product, process, or service. For instance, in the case of a manufactured product, environmental impacts are assessed from raw material extraction and processing (cradle), through the product's manufacture, distribution and use, to the recycling or final disposal of the materials composing it (grave).

An LCA study involves a thorough inventory of the energy and materials that are required across the supply chain and value chain of a product, process or service, and calculates the corresponding emissions to the environment. LCA thus assesses cumulative potential environmental impacts. The aim is to document and improve the overall environmental profile of the product by serving as a holistic baseline upon which carbon footprints can be accurately compared.

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Value chain in the context of Agribusiness value chain

An agricultural value chain is the integrated range of goods and services (value chain) necessary for an agricultural product to move from the producer to the final consumer. The concept has been used since the beginning of the millennium, primarily by those working in agricultural development in developing countries, although there is no universally accepted definition of the term.

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Value chain in the context of Clothing industry

Clothing industry, or garment industry, refers to the range of trade and industry sectors involved in the production and value chain of clothing and garments. This includes the textile industry (producers of cotton, wool, fur, and synthetic fibre), embellishment using embroidery, the fashion industry, apparel retailers, and trade in second-hand clothes and textile recycling. Textile factories are also called "mills". Textiles factories or "mills" turn the natural or synthetic materials into Yarn which will be sent for weaving and knitting (process of turning yarn into a textile cloth). Then apparel textile mills make wearable pieces from those textile cloths. The producing sectors build upon a wealth of clothing technology some of which, like the loom, the cotton gin, and the sewing machine heralded industrialization not only of the previous textile manufacturing practices. Clothing industries are also known as allied industries, fashion industries, garment industries, or soft goods industries.

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