Published on

Differences between Supply Chain and Value Chain.

Differences between Supply Chain and Value Chain

Introduction

Supply chain refers to the integration of all activities involved in the process of sourcing, procurement, conversion, and logistics. On the other hand, value chain implies the series of business operations in which utility is added to the goods and services offered by the firm to enhance customer value.

In this article, we will delve into the basic differences between supply chain and value chain in a tabular form.

Basic Differences in Tabular Form

  1. Activity Integration:

    • Supply Chain: The integration of all the activities, persons, and business through which a product is transferred from one place to another is known as supply chain.
    • Value Chain: Refers to a chain of activities that is indulged in adding value to the product in every single step till it reaches the final consumer.

  2. Concept Origin:

    • Supply Chain: The concept of supply chain is originated from operational management.
    • Value Chain: Value chain is derived from business management.

  3. Primary Activities:

    • Supply Chain: Activities include the transfer of material from one place to another.
    • Value Chain: Primarily concerned with providing value for price product or service.

  4. Order of Operations:

    • Supply Chain: Begins with product request and ends when it reaches the customer.
    • Value Chain: Begins with the customer's request and ends with the product.

  5. Major Objectives:

    • Supply Chain: The major objective is to gain complete customer satisfaction.
    • Value Chain: Focuses on gaining competitive advantage.

Keywords

  • Supply Chain
  • Value Chain
  • Activity Integration
  • Operational Management
  • Business Management
  • Customer Value
  • Competitive Advantage
  • Procurement
  • Logistics

FAQ

Q1: What is the primary objective of the supply chain? A1: The primary objective of the supply chain is to gain complete customer satisfaction.

Q2: Where does the supply chain concept originate from? A2: The supply chain concept originates from operational management.

Q3: What does the value chain primarily concern itself with? A3: The value chain is primarily concerned with providing value for price product or service.

Q4: How does a value chain begin and end? A4: A value chain begins with the customer's request and ends with the product.

Q5: What is the main goal of the value chain? A5: The main goal of the value chain is to gain competitive advantage.

Read More