SUPPLY CHIAN NETWORK OF TARGET VALUE CHIAN ANALYSIS OF TARGET Value chain analysis is a set of inter - linked value creating activities performed by the organisation that begin with inputs, go through processing and continue up to outputs manufactured to customers. It is the set of activities that creates additional value for the customer. Value chain plays a central role in improving cost efficiency, quality and customer responsiveness. Each activity in the value chain adds to the value of product in each process from its creation to delivery. According to Porter’s value chain analysis company activities are divided in Primary and Supportive activities.
It includes the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. Interconnected or interlinked networks, channels and node businesses are involved in the provision of products and services required by end customers in a supply chain. Supply chain management has been defined as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally. SCM draws heavily from the areas of operations management, logistics, procurement, and information technology, and strives for an integrated approach.”
Michael Porter suggested that the activities of a business could be grouped as Primary Activities and Secondary Activities. 1. Primary Activities - these are directly concerned with creating and delivering a product (e.g. component assembly). They consist of: • Inbound logistics: These are all the processes related to receiving, storing, and distributing inputs internally.
Impact: What value a product would augment better than the competitors and how a product is facilitating the target market better than the alternatives. Proof: It is the endorsement that a specific product has delivered specific values in the most cost effective manner to gain customer satisfaction. Cost: It is the value a customer is expecting to get from a product paying a certain amount of money. Customer compares the value of the product with the cost that they have to pay and evaluate whether it delivers what is expected or not? Dimensions of Value proposition from company’s perspective are Value Creation: The basic step where the idea of value specification is presented and processed.
Consumer is one who consumes the goods & services product. The aim of marketing is to meet and satisfy the Consumer needs and wants. The modern marketing concept makes customers the centre stage of organisation efforts. The focus, within the marketing concepts is to reach target and largest customer’s sets ball rolling for analysing each of the conditions of the target market1. Consumer behaviour can be defined as “the decision making process and physical activity involved in acquiring, evaluating, using and disposing of goods and services”.
According to Chow and Heaver (1999), a supply chain is “a group of manufacturers, suppliers, distributors, retailers and transportation, information and other logistics management service providers that are engaged in providing goods to consumers. A Supply Chain comprises both the external and internal associates for the corporate”. From the above definition, it can be seen that supply chain is about various players which are found both inside and outside a firm who come together to ensure satisfaction of
The theory point of view is the market sale of all kinds of information about the products is more comprehensive than the purchaser to know more about the goods all kinds of information to understand better than the other benefit is bigger, the relevant commodity information had less knowledge of the purchaser will pay the price get more information from sellers, market information of the transfer function can reduce the loss caused by asymmetric information, information asymmetry is the inevitable defects in market economy, the government should have the regulatory effect in the market system, in order to reduce the information asymmetry of economic losses.However, owners and users in the acquisition, transmission, processing information related to the investment decision will produce deviation, so the solution of the problem of asymmetric information to improve the efficiency of investment has important practical
Logistics is generally viewed as within one company, although it manages flow between company and its suppliers and customers. It is also part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers' requirements. Logistics management activities typically include inbound and outbound transportation management, fleet management, warehousing, materials handling, order fulfillment, logistics network design, inventory management, supply/demand planning, and management of third-party logistics services providers. To varying degrees, the logistics function also includes sourcing and procurement, production planning and scheduling, packaging and assembly, and customer service. It is involved in all levels of planning and execution—strategic, operational, and tactical.
Efficient supply chain management can help manufacturing companies have the foresight to reduce costs. For manufacturing firms, supply chain management affects the quality of corporate revenue and profits. Effective management of all aspects of the supply chain not only for enterprises to increase revenue, that also can reduce the total cost and improve product margins. Supply chain management of the value of manufacturing enterprises in three aspects to eliminate waste, improve efficiency and optimize the quality of service. Post-industrial economy, businesses compete in terms of reducing the cost of production is already quite mature, in production to further tap the " profit growth," the space is very limited, in this case, we should have a manufacturing enterprise supply chain management strategic vision, enhance the level of supply chain management, the only way to build lasting competitive advantage, so even in the face of