Multidimensional Value Chain

Submitted By zinosama
Words: 387
Pages: 2

Multidimensional Value Chain
The traditional Value Chain is linear - for example, it assumes that input logistics are directly related to operations - and that value between these linear nodes should be analyzed. However, in reality, each domain links with multiple other domains - for example, sales and marketing often link with input logistics in order to determine costs, pricing and branding. These non-linear relationships should also be considered.

Further, there are links between domains to other companies - for example, output logistics may link to various other firms depending on the exact nature of an order (first class customers may require delivery through Fedex and economy customers may require delivery through the United States Postal Service etc). There is increased value to be found in each of these relationships.

Supply Chain, Other Chains (Chain Analysis)
The Value Chain is one method of analysing the chain from source to delivery. The Supply Chain and many others are also useful, parallel Chain Analysis Tools.

Various differences between the models exist. For example, a focus on the Supply Chain may lead to optimization (which may cost money) whereas a focus on the Value Chain may lead to value-adding (which may save money).

These models are included in the software.

Value, Supply, Chain Grids
The Value Grid, Supply Grid and Chain Grids call for multi-firm analysis and coordination. Common value-adding and margin maximizing activities could include minimizing the risk of the future cost of oil (purchasing, hedging; this