Value Chain Management has a broad scope: From the “supplier’s supplier” to the “customer’s customer”
Value Chain Management addresses multiple flows
- All physical flows (materials and products), both forward and reverse
- All information flows, including the “Voice of the Customer”
Fundamental principles of Value Chain Management:
- Optimize the whole, not the pieces
- Broader than “cradle to grave” (“lust to dust”)
- Delight our customers in a way that improves the financial returns of all value chain participants
Value Chain Management utilizes a broad range of toolkits:
- Supply Chain Management
- Continuous Flow Manufacturing (CFM)
- Strategic Procurement
- Integrated Logistics
- Integrated Product and Process Development (IPPD)
- Customer Value Management
- Information Technology Management
- Strategic Marketing
- Integrated Sales Management
- Integrated Project Management
- Activity Based Management
- Theory of Constraints