Skip to main content

Michigan State University masthead

Value Chain Approach

Value Chain: Cohesive Approach, Maximum Value.

Value chains take a complete view of a system, considering every link and activity from start to finish. For instance, in manufacturing this means starting with the raw materials needed to produce a product and then considering every step to produce and deliver it to customers through recyclability.

Competitive Advantage

In today’s global economy, firms must think in terms of value chains and act on them. This is more than semantics. Optimal or smart value chain management enhances stakeholder value throughout the value chain.

A smart value chain looks holistically at the entire supply chain and focuses on delivering value to the end customer. Organizations operating with a smart value chain mindset are less likely to experience disruption in their supply chains due to tighter integration with suppliers and shared objectives – delivering their product or service to the end customer as efficiently as possible.

Value chain efficiency, effectiveness, relevancy and sustainability represent the wave of the future for business competitiveness – a wave that businesses are beginning to ride around the world and a wave firms must learn to ride better than their competitors.

Solutions to Societal Challenges

Value chains can deliver tremendous value to non-governmental organizations, as well as businesses trying to solve critical world challenges. The Axia Institute researchers are studying value chains that impact reliable food supplies and fresh drinking water supplies in arid regions. The holistic value chain view can lead to streamlined, pragmatic solutions by looking at the whole system and the relationship to its parts.

Anatomy of a Value Chain