Value Chain Management

MANAGEMENT OF A VALUE CHAIN

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A firm needs to have a set of operations that ensure delivery of value on the particular services and products that they offer to customers. To make a critical reflection on managing value chain, there is the need to relate it to a product as is expected to happen in a professional life. As a potential managing officer, there is the need for the ability to sell skills and unique techniques that are bound to improve the performance of an organization (Sabri & Shaikh, 2010).

Any company with an efficient value chain must be most likely dependent on an efficient value chain management. It was critical for a company to understand and know its value chain so as to remain ahead in the competition and succeed in the competitive market. Understanding the value chain of a business can at times be cost effective (Nakhla, 2006). This essay will go into details to provide a comparison of enterprises which have efficient value chains with the ones that do not. A strong value chain can bring much achievement to a company through customer satisfaction that can get to develop into a competitive advantage.

My idea of the value chain has changed considerably. Through the subject, I have learned that the concept of the value chain is pegging on the view process of organizations, the perception of manufacturing firms as a system with subsystems that give inputs each, the process of transformation and output. The change process, inputs, and outputs involve the consumption and acquisition of resources such as labor, money, materials buildings, equipment, administration, land, and management. The value chain management determines the costs incurred by an organization and has a significant impact on profits (Sabri & Shaikh, 2010). The majority of firms engage in several activities during the conversion process of inputs to outputs. From this subject, I have learned that the activities can be regulated either secondary or primary activities. The main activities include; inbound logistics, operations, outbound logistics, marketing, and sales as well as services. The secondary category includes; procurement, human resource management, technology development and infrastructure.

Inbound logistics, refer to the relationship created between the organization and its suppliers. It includes all the required activities obtain, store and dispatch inputs. Operations involve the required activities in the transformation of inputs to outputs. Production logistics entails all the necessary activities in collecting, storing and distributing outputs. Marketing and sales, on the other hand, refers to the activities that are carried out by the firm to inform buyers about the existence of a product or service. The events are meant to induce the potential customers to buy and to enhance purchase facilitation. Finally, services involve all the activities needed to keep the product operational for the customer after its sale and delivery.