Page 481 - Fundamentals of Management Myths Debunked (2017)_Flat

• They define what value is and how it’s created and provided.
• Using VCM, managers seek to find that unique combination in which customers are

offered solutions that truly meet their needs and at a price that can’t be matched by
competitors. 16

Goals of Value Chain Management

• Sequence of participants work to-
gether as a team, each adding some

component of value—such as faster
assembly, more accurate informa-

tion, or better customer response
and service—to the overall process. 17

• The better the collaboration among the

various chain participants, the better
the customer solutions.

• When value is created for customers

and their needs and desires satisfied, Durand Florence/SIPA/Newscom
everyone along the chain benefits. 18

2 How Does value Chain Management

Benefit Businesses?

• Improved procurement (acquiring needed resources).

• Improved logistics (managing materials,
service, and information).

• Improved product development (close

relationships with customers leads to
developing products they value).

• Enhanced customer order management

(managing every step to make sure customers
are satisfied). 19
nickylarson974/Fotolia

480