Question

1. What is the difference between a Supply Chain and a Value Chain? Give an example of each using real companies.
2. What are some of the risks associated with a Supply Chain?
3. What is the difference between reshoring, insourcing, and outsource? What are the advantages and disadvantages of each one?

Answer 1

A.

A Supply Chain is a network between company and its supplier to produce and distribute a specific product to a final buyer. The Supply Chain also represents the steps it takes to get the product or service from its original state to the customer. It invovles activities involve the transmission of natural resources,raw material and components into a finished product that is delivered to the end customer.

Value Chain depicts Research, Development , Production, Marketing, Distribution, Customer Support. A Strategic tool to measure the importance of the customer's perceived value is value chain analysis. By enabling companies to determine the strategic advantages and disadvantages of their activities and value creating processes in the marketplace , Value analysis becomes the essential for assessing competitve advantage. Porter includes two activities Primary Activities and Support Activities.Value chain for any firm is the value creating activities all the way from basic raw material sources from component suppliers through to the ultimate end use product delivered into  the final consumers hands.

McDonald is the exmaple of value chain.

Nike, Unilever is also example of supply chain.

b. Risks associated with Supply Chain:

1. Political and Government Changes- When Government changes the policies and procedures then company will follow that procedures.

2. economic Instability: economy is not stable. like through various phases such as boom, recession and depression.

3. Environmental Risks: If any procedure followed in supply process and that is against Environment then company's all production will wasted.

4. Cyber Attacks: If our procedures are not fully secured then there will be threat of data loss which are on cloud or server.

C.

Reshoring: the practice of transferring a business operation that was moved overseas back to the country from which it was originally relocated.-advantage like in the case of export and import.

Insourcing:the practice of using an organisation's own personnel or other resources to accomplish a work that was previously outsourced.That organsiation has its own sources then analysis that resources that how to use that resources. - Advantage

Outsource: when the company has not enough resources then Company go for outsource. by avail the services from others to save the cost also- Advantage