Value chain in the context of Garment workers

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.

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.

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.

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.

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.

Creating shared value (CSV) is a business concept first introduced in a 2006 Harvard Business Review article, Strategy & Society: The Link between Competitive Advantage and Corporate Social Responsibility. The concept was further expanded in the January 2011 follow-up piece entitled Creating Shared Value: Redefining Capitalism and the Role of the Corporation in Society. Written by Michael E. Porter, a leading authority on competitive strategy and head of the Institute for Strategy and Competitiveness at Harvard Business School, and Mark R. Kramer, of the Kennedy School at Harvard University and co-founder of FSG, the article provides insights and relevant examples of companies that have developed deep links between their business strategies and corporate social responsibility (CSR). Porter and Kramer define shared value as "the policies and practices that enhance the competitiveness of a company while simultaneously advancing social and economic conditions in the communities in which it operates", while a review published in 2021 defines the concept as "a strategic process through which corporations can turn social problems into business opportunities".

Menghwar and Daood (2021) conducted a comprehensive review published in the International Journal of Management Reviews ranked second best journal in the field of management in year 2022. In this article, they further refine three characteristics of creating shared value and define CSV as "a strategic process through which corporations can solve a social problem which is relevant to its value chain while making economic profits".

A global value chain (GVC) refers to the full range of activities that economic actors engage in to bring a product to market. It plays a critical role in the modern economy, bridging thousands of different markets, technologies, and ideas. The global value chain does not only involve production processes, but preproduction (such as design) and postproduction processes (such as marketing and distribution).

GVC is similar to Industry Level Value Chain but encompasses operations at the global level. GVC is similar to the concept of a supply chain, but the latter focuses on conveyance of materials and products between locations, often including change of ownership of those materials and products. The existence of a global value chain (i.e. where different stages in the production and consumption of materials and products of value take place in different parts of the world) implies a global supply chain engaged in the movement of those materials and products on a global basis. By outsourcing to various economic actors, firms can efficiently and effectively design, manufacture, and distribute products globally. However, these benefits come at a cost, with distinct winners and losers within the GVC.

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 focuses on the optimization of the flow of goods within the supply chain's distribution channels to ensure efficiency.

In sophisticated supply chain systems, the reintroduction of used products into the supply chain may occur at any point where the residual value of the product is recyclable. Supply chains are linked to value chains, and suppliers within a supply chain are often organized into tiers. First-tier suppliers, also referred to as "direct suppliers", directly supply goods or services to the client. Second-tier suppliers supply to the first tier, and so on, creating a hierarchical structure within the supply network.