oboloo Glossary

Value Chain And Supply Chain

oboloo Glossary

Value Chain And Supply Chain

A value chain is the set of integrated activities and processes that provide a company with a competitive advantage in creating, producing, marketing, distributing, and delivering its products or services to customers. On the other hand, a supply chain is the sequence of companies and processes used to make and deliver goods or services from supplier to customer. In essence, the value chain is about refining the operations for greater efficiency of the supply chain. It focuses on how a business can create more value at each stage of the production process—from procuring raw materials, to manufacturing, logistics, marketing, and distribution. The ultimate aim is to innovate, streamline, and optimize the flow of goods and services to increase profits.