The value chain describes the full range of activities that firms and workers do to bring a product from its conception to its end use and beyond. This includes activities such as design, production, marketing, distribution and support to the final consumer. Value chain activities can occur within or between firms, within a single geographical location or spread across wider areas, and can produce goods or services. The overall goal of the value chain is to create value that exceeds the cost of providing a product or service, thus generating a profit margin.
The concept of the value chain is at the early stages of a journey and many people still think conventionally. Building Effective Value Chains challenges this notion, helping people to think differently and to pursue the right goal in business.
Building Effective Value Chains gives practical, easily understood advice on enhancing the value chain, supported by case studies from the public and private sector that illustrate how the methodology can be applied to different value chains. The book also considers the commercial value of the value chain as well as the academic origins of the value chain. Author Tom McGuffog shares his knowledge and experience from working in Rowntree and Nestle, the UK Procurement Agency, the Defence Logistics Organisation, and NHS Purchasing and Supply. Taking a global perspective, the issues discussed in this book are applicable internationally.
Building Effective Value Chains includes executive summaries at the end of each chapter, useful online materials, and a comprehensive list of references.
Tom and I have discussed over many years how best to develop sharp business process and data standards whereby customers and supplies, including competitors, can best design and run modern supply chains to serve the customer more cost effectively. Most recently we have debated what we should mean by value and how best it can be realised through sound management. I trust this book will stimulate you to look afresh at your value chains.