Page 479 - Fundamentals of Management Myths Debunked (2017)_Flat

What Is value Chain Management
and Why Is It Important?

15-2 Define the nature and purpose of value chain management.

The following examples of closely integrated work activities
among many different players are brought to you by …
VALUE CHAIN MANAGEMENT!

• BIG management assignment due in one week and your computer crashes!
NO!!! Your custom-designed dream computer is built to your exact specifications and
delivered two days later. Management assignment DONE!
• Zero inventory warehousing. Order processing that

involves only one change of hands. It’s happening at
Siemens AG’s Computed Tomography manufacturing
plant in Forchheim, Germany, because its 30
supplier partners share responsibility with the

plant for overall process performance. Marek Kosmal/Fotolia
• Black & Decker’s handheld glue gun—totally outsourced
to the leading glue gun manufacturer. 12

1 What Is value Chain Management?

Let’s start from the beginning. . .

• Every organization needs customers to survive and prosper.

• Customers want value from the goods and services
they purchase or use, and they decide what has value.

• Organizations must provide that value to attract and
keep customers.

• value is defined as the performance characteristics,
features and attributes, and any other aspects of goods vege/Fotolia
and services for which customers are willing
to give up resources (usually money). value
The performance characteristics, features, attributes, and other aspects of
goods and services, for which customers are willing to give up resources

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