Value Chain Construction

What is a value chain?

A network of businesses, nonprofit organizations, and collaborating players who work together to satisfy market demand for specific products or services. Because value chains are built in response to market demand and involve clear and constant communication, they can be more responsive and innovative than traditional supply chains. We use the term Value Chain to show the relationship to a traditional business Supply Chain. The key difference: value chain structure and functioning is more like a complex, cyclical network than a liner chain.

Characteristics of a value chain

  • Demand-Driven
  • Systems Approach
  • Cooperation & Collaboration
  • Consistent Communication
  • Common Set Of Values