What is a value chain -- longer definition
A value system is defined as follows: A connected series of organizations, resources, and knowledge streams involved in the creation and delivery of value to end customers. Value systems integrate supply chain activities, from determination of customer needs through product/service development, production/operations and distribution, including (as appropriate) first-, second-, and third-tier suppliers. The objective of value systems is to position organizations in the supply chain to achieve the highest levels of customer satisfaction and value while effectively exploiting the competencies of all organizations in the supply chain [pg. 11-12].
Supply Chain Redesign (Handfield and Nichols, 2002 Financial Times Management)
The VCPSA project is most interested in adding sustainability to the value chain concept – sustainable value chains emphasize long-term, significant economic return to all firms in a chain, particularly producers who follow production practices using the highest standards of environmental and community stewardship.
In a value chain business arrangement, each actor in the chain must make a mental shift from simply “What is best for my firm and my firm now?” to “What can I do in my firm to maximize the economic, environmental and community benefit to all the members of this value chain?” A significant change often comes in the form of information sharing. In a value chain members need to share a great deal more business information with one another so that all can make better decisions that affect the group.
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