value chain
Steps adding worth
A value chain is the sequence of activities a company performs to create and deliver a product or service—from raw materials through production, marketing, and distribution to the end customer.
The concept, from business strategy, helps identify where value is added and where efficiency can improve: We analyzed our value chain to find cost savings.
The term often appears in discussions of global manufacturing and supply networks.
Those who furnish goods
- procurementObtaining goods externally
- inboundTraveling toward a destination
- operationsPlanned systematic activities
- outboundHeaded away from origin
marketing · sales · service · margin · profitability · upstream · downstream · distribution channels
Moving people or goods
- warehousingStoring goods commercially
- inventoryCatalog of held assets
- distributionAllocation across recipients
- freightGoods being transported
delivery · tracking · 3PL · fulfillment · lead time · order processing · last mile · supply network
Factor enabling market outperformance
- differentiationRecognizing meaningful differences
- core competenciesOrganization's distinguishing capabilities
- market positioningBrand's competitive stance
- vertical integrationOwning multiple production stages
outsourcing · insourcing · synergy · bargaining power · positioning
Industrial product creation
- assemblyConstructing from components
- raw materialsUnprocessed production inputs
- componentsConstituent parts
- work-in-progressIncomplete but active endeavor
finished goods · quality control · fabrication · throughput · yield · capacity · production planning · subassembly
Productive without waste
- leanLacking fat; incline
- streamliningMaking more aerodynamic or efficient
- cost reductionDecreasing expenditure amounts
- continuous improvementIncremental ongoing enhancement
bottleneck · throughput · cycle time · kaizen · just-in-time · reengineering
Moving work overseas
- reshoringRelocating production domestically
- nearshoringRelocating work to neighboring countries
- tradeExchange of commodities
- tariffsTaxes on imports
cross-border · multinational · regional hubs · free trade zones
Measuring against top performers
- gap analysisComparing actual to desired
- disaggregationSeparation into constituent parts
- competitive analysisSystematic study of market opponents
suppliers
Those who furnish goods
- procurementObtaining goods externally
- inboundTraveling toward a destination
- operationsPlanned systematic activities
outbound · marketing · sales · service · margin · profitability · upstream · downstream · distribution channels · customer relationship
transportation
Moving people or goods
- warehousingStoring goods commercially
- inventoryCatalog of held assets
- distributionAllocation across recipients
freight · delivery · tracking · 3PL · fulfillment · lead time · order processing · last mile · supply network
competitive advantage
Factor enabling market outperformance
- differentiationRecognizing meaningful differences
- core competenciesOrganization's distinguishing capabilities
- market positioningBrand's competitive stance
vertical integration · outsourcing · insourcing · synergy · bargaining power · positioning
manufacturing
Industrial product creation
- assemblyConstructing from components
- raw materialsUnprocessed production inputs
- componentsConstituent parts
work-in-progress · finished goods · quality control · fabrication · throughput · yield · capacity · production planning · subassembly · transformation
efficiency
Productive without waste
- leanLacking fat; incline
- streamliningMaking more aerodynamic or efficient
- cost reductionDecreasing expenditure amounts
continuous improvement · bottleneck · throughput · cycle time · kaizen · just-in-time · reengineering
offshoring
Moving work overseas
- reshoringRelocating production domestically
- nearshoringRelocating work to neighboring countries
- tradeExchange of commodities
tariffs · cross-border · multinational · regional hubs · free trade zones
benchmarking
Measuring against top performers
- gap analysisComparing actual to desired
- disaggregationSeparation into constituent parts
- competitive analysisSystematic study of market opponents
value chainresource drain
chain, value, chains, valued, values, evaluation, chained, invaluable, devalue