June 2021
Beginner
488 pages
10h 7m
English
Content preview from Fundamentals of Level Three Leadership
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Concept
A concept close to the supply chain is the value chain. The value chain is the series of steps or links in the process that leads to customer satisfaction. If one analyzes the value chain for the profit and loss structures in each link, one can avoid the meta-thinking that goes along with vertical integration. In vertical integration, the thinking goes, “If we own all the steps in our value chain, we can control our costs and supplies better.” That may or may not be the case and a value chain analysis addresses that issue.
A value chain analysis consists of identifying all of the steps involved from raw materials to maintenance. Then, one analyzes each step or link in the chain to determine the profit margins evident in ...
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