Question

Explain the value chain analysis and supply chain analysis?

Answer 1

Value chain analysis
Value chain analysis is a process of dividing various activities of the business in primary and support activities and analyzing their contribution towards value creation to the final product.
Primary Activities: These are concerned with the conversion of input into output and distribution activities . It includes:
Inbound Logistics: It includes activities which make available goods and services for operational processes.
Operations: The activity of transforming input raw material to final product ready for sale
Outbound Logistics:These are the activities that help in collecting, storage and delivering the product to the customer
Marketing and Sales: Activities which are performed to make the customer aware of the product or service and create demand for it
Service: Service means service provided to the customer.
Support Activities: Those activities which assist primary activities
Procurement: This activity which make available all the necessary inputs like material, machinery or other consumable items, that required by the organization for performing primary activities.
Technology Development
Human Resource Management: These include overseeing the selection, retention, promotion, transfer, appraisal and dismissal of staff.
Infrastructure: These activity includes planning, finance, information management, quality control, legal, government affairs, etc.
Supply chain analysis
It is the process of analysis the each step of the supply chain from the procuremnet of the raw material to the final dilevery of the product . The aim of such analysis is to find the scope of inprovement in the supply chain
Steps involved are
Mapping the steps involved in the suply chain (through a flowchart) to obtain an understanding of the chain, the position of the various activities of the chain and type of interaction between the activities.
Quantifying the activities observed and their flow of material both in physical and in monetary terms between those activities. This helps to assess the importance of the different activities or sub-chains of the chain, which in turn will allow an appropriate use of time and resources.