Value Chain Innovation

Where on the value chain can you innovate in order to create superior customer value? That question should haunt marketers. The value chain is the series of events between conception of the product/ service and when it finally lands in the customer hands (or the customer disposes of it). WalMart and its largest supplier, Proctor and Gamble, saved money by moving from legal contracts to handshakes. WalMart created a cross docking procedure that eliminated costs in their distribution system, thereby adding value. Most United States retailers have added value in their supply chains by sourcing from China and the Far East. As one company president said, “I can make it in China and ship it here for a third of the cost that I ...

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