Added by PI Blogger, 21 weeks ago

• Location: somewhere

Member Question:

What is the difference between Supply Chain and Value Chain?

My Response:

To begin, the reference to supply or "value" chain is a misnomer in that it implies a sequential architecture. This is a term that is on its way out as an organization's supply "practice" is actually centered on the synchronization of diverse stakeholders sometimes spanning multiple supply networks. This is an important distinction given the impact that real-world synchronization has on theories such as value chains.

That said the concept of the value chain was first introduced by Michael Porter in 1985 in his book, Competitive Advantage: Creating and Sustaining Superior Performance.