Supply Chain vs. Value Chain: What is the difference between supply and value chains?

I offer a concise articulation of the difference between a #supplychain and a #valuechain because I recently returned from a conference in which the distinction between them was blurred to the point that the users of these concepts used them as synonyms. The difference is significant in analyzing the business of business and proposing an organization's #strategy for meeting its challenges and fulfilling its vision.?

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Supply Chain:

• Focuses on the physical flow of materials and products from suppliers to consumers.
• Primarily concerned with manufacturing, logistics, and distribution processes.
• Deals with building the product and ensuring its delivery to the end customer.
• Emphasizes efficiency in procurement, production, transportation, and inventory management.

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Value Chain:

• It encompasses all activities within a company that contribute to creating customer value.
• Includes both primary activities directly involved in production and support activities that facilitate the primary functions.
• Seeks to enhance the product's value at each stage of the production and delivery process.
• Involves activities such as product design, marketing, sales, customer service, and innovation.

In summary, while the supply chain focuses on the physical flow of products, the value chain encompasses a broader range of activities to enhance the product's value and customer satisfaction throughout the production and delivery processes.

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