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What is the difference between Supply chain and value chain? Example if you know one.

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Question added by rehan ahmad , Territory Sales Manager , Engro Foods
Date Posted: 2013/07/14
Wafa Akbar Ali
by Wafa Akbar Ali , Fashion Designer , Ammara Khan

In Supply chain consist of steps in which material transfer from one place to final place while in value chain instead of transferring we add some certain values to them.
e.g: like fruits transfers to farmers then wholesaler then retailer then consumer but in value chain we add some values like grading then sorting then packaging then cool and storing etc

PRAVEEN VARMA
by PRAVEEN VARMA , General Manager , Conoil Plc, Aappa Terminal

Supply Chain is all about receiving the product from suppliers and despatching it to final destination.
All the parameters required in this process comes under supply chain.
In this process the product is despatched as it receives from the supplier.
  In value chain all the parameters are same as supply chain except processing / grading before final despatch.
So we add a value to the product.
  As an expample in India the goods train are taking product from one end to other.
In this process the railway warehouse receive the product from suppliers, store in ware house, ship to other end, despatch at the other end.
So product is despatched as it is received.
  In the similar way in USA the food / vegetables are shipped from one end to another.
All the process is same as supply chain but at the receiving end warehouse they open all the packages of the fruit / vegitable then segregate the material and do the grading.
After grading they repack the material and then despatch.
So they are adding value to the product by means of grading.
So it is called value chain.
  Trust this will help.
 

Nasser Zaky
by Nasser Zaky , Logistics Executive Manager , EZZSTEEL

Supply chain is a design that links all members together to integrates supply and demand management within and across companies to meet the customer requirements but value chain is the advance meaning which ensure achieving of a value for all members within the chain that reflect win win concept.
This concept allows the supply chain to grow..

Murali mohan Chalapathy
by Murali mohan Chalapathy , Business Operations Analyst-Assistant Manager , HP Global ebusiness solution (GPSC)

Supply Chain :The movement of materials as they flow from their source to the end customer.
Supply Chain includes purchasing, manufacturing, warehousing, transportation, customer service, demand planning , supply planning and Supply Chain management.
It is made up of the people, activities, information and resources involved in moving a product from it's supplier to customer.
Value Chain:Value chain is a concept in business management science, developed for the first time by Michael Porter in his book “Competitive Advantage: Creating and Sustaining Superior Performance”.
Porter stated the definition of “values” as the amount of money payable by customer for what the company can give to.
Simply, the definition showed the combination of activities of a company to "added values" on the materials delivered to customers.

Travis Thomas
by Travis Thomas , Associate Vice President - Portfolio Manager , FirstBank

A supply chain is the network a company uses to get a product from the supplier to the customer and includes the flow of materials, information, and money involved in the transaction.
A value chain is the process and network involved with actually gathering components and assembling those components.
The key difference between the two is that each step in a value chain should add value to the goods being moved through the chain while the goods moving through a supply chain typically do not gain value in the process.
As an example, when Apple sources components for the iPhone, sends those components to a facility for assembly, and then sends the assembled iPhones along for kitting and packaging for distribution you have a value chain because each step in the chain adds value from component to completed iPhone to iPhone kitted and boxed for retail.

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