Question

Difference between supply chain management and value chain management

Answer 1

Answer:

● Supply chain :-

Supply chain management originates from operations management and the definition is "the integration of suppliers, manufacturers, warehouses and stores to that merchandise is produced and distributed to the right locations at the right time while containing costs and maintaining service levels."

● Value chain :-

Value chain originates from business management and was popularized by Michael Porter in his 1985 best-seller, Competitive Advantage: Creating and Sustaining Superior Performance. A value chain is a chain of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market.

So, supply chain can also fit the value chain definition in the case of creating and delivering physical products.