VALUE AND SUPPLY
CHAIN IN RELATION TO
THE BUSINESS
ENTERPRISE
SUPPLIER
THEY ARE YOUR BUSINESS PARTNERS,
WITHOUT THEM YOUR BUSINESS WILL NOT
LIVE. YOU NEED THEM AS MUCH AS YOU
NEED YOUR CUSTOMERS TO BE SATISFIED
SUPPLY CHAIN
• IS THE NETWORK OF ALL THE
INDIVIDUALS, ORGANIZATIONS,
RESOURCES, ACTIVITIES AND
TECHNOLOGY INVOLVED IN THE
CREATION AND SALE OF A PRODUCT.
VALUE CHAIN
• VALUE CHAIN - IS A SET OF
ACTIVITIES THAT FIRM OPERATES AND
PERFORM IN A SPECIFIC INDUSTRY IN
ORDER TO DELIVER A VALUABLE
PRODUCT FOR THE MARKET.
MICHAEL PORTER
• THE FOUNDER OF THE MODERN
STRATEGY AND ONE OF THE
WORLDS MOST INFLUENTIAL
THINKERS ON MANAGEMENT AND
COMPETITIVENESS.
VALUE CHAIN CONCEPT
5 Primary Activities
1. INBOUND LOGISTICS –RECEIVING,
WAREHOUSING AND INVENTORY CONTROL. (WHERE
RAW MATERIALS ARE HANDLED)
2. OPERATIONS – VALUE CREATING ACTIVITIES THAT
TRANSFORM INPUTS (RAW MATERIALS) INTO
PRODUCTS SUCH AS ASSEMBLING AND
MANUFACTURING. (MACHINING, ASSEMBLING, TESTING
PRODUCTS)
3. OUTBOUND LOGISTICS – THESE ARE THE ACTIVITIES
REQUIRED TO GET A FINISHED PRODUCTS TO A CUSTOMERS
(THIS INCLUDES WAREHOUSING, INVENTORY MANAGEMENT,
ORDER FULFILLMENT AND SHIPPING). WAREHOUSING AND
DISTRIBUTING OF FINISHED PRODUCTS.
4. MARKETING AND SALES – THESE ARE THE ACTIVITIES
ASSOCIATED WITH INFLUENCING A BUYER TO PURCHASE A
PRODUCT. (ADVERTISING, PROMOTING, PRICING AND CHANNEL
RELATION)
5. SERVICE – THESE ARE THE ACTIVITIES THAT MAINTAIN AND
ENHANCE A PRODUCTS VALUE SUCH AS CUSTOMERS SUPPORT
AND WARRANTY.
ACTIVITY : SELECT OR PINPOINT
POTENTIAL SUPPLIERS
• LIST DOWN THE SUPPLIES, MATERIALS OR INGREDIENTS NEEDED TO MAKE
YOUR PRODUCTS OR TO PROVIDE SERVICES TO YOUR CUSTOMERS. YOU WILL
REALIZE THEY ARE NOT ALWAYS WITHIN YOUR REACH. YOU MAY NEED TO
SOURCE THEM OUTSIDE YOUR SCHOOL OR HOME.
• LIST DOWN ALL THE MATERIALS OR INGREDIENTS( IN CASE OF A FOOD-
RELATED KIND OF BUSINESS) OR SUPPLIES( IN CASE OF A SERVICE TYPE OF
BUSINESS) THAT YOU WOULD NEED FOR YOUR BUSINESS.
• THE LIST SHOULD ALSO INCLUDE THE QUANTITY OF EACH MATERIAL,
INGREDIENT OR SUPPLY AS WELL AS ITS PRICE AND SUPPLIER.
Ingredients/ Quantity( expressed Price Supplier
Materials/ Supplies in terms number of
pieces, weight,
length, etc)
DESCRIBE YOUR VALUE OR SUPPLY
CHAIN
A SUPPLY CHAIN IS THE PROCESS OF ALL PARTIES INVOLVED IN FULFILLING A
CUSTOMER REQUEST WHILE A VALUE CHAIN IS A SET OF INTERRELATED
ACTIVITIES A BUSINESS USES TO CREATE A COMPETITIVE ADVANTAGE.
Busines
s Model
Business model
describes the factors of how an
organization creates, delivers, and
captures value in economic, social,
cultural or other contexts. The
development of business model
construction and variation is also called
business model innovation
It describes what products or services the
business plans to manufacture and
market, and how it plans to do so, as well
VALUE PROPOSITION
COMPONENTS
1. THE PRODUCT OFFERING: WHAT WILL MAKE THE PRODUCT OFFERED DIFFERENT
FROM THOSE OF COMPETITORS?
2. TYPE OF PRODUCT: WILL THE PRODUCT BE STANDARDIZED OR CUSTOMIZED?
3. DISTRIBUTION METHOD: WILL DIRECT OR INDIRECT DISTRIBUTION BE USED?
4. MANUFACTURING PROCESS: INTERNAL MANUFACTURING OR OUTSOURCING?
