Assignments

Dooars Academy of Technology & Management

Affiliated to Maulana Abul Kalam Azad University of Technology, West Bengal

Formerly Known as West Bengal University of Technology

Name : NIKITA PRADHAN

Roll No : 19905022005

Department : BACHELOR OF BUSINESS ADMINISTRATION

Subject : Supply Chain Management and Value Chain

Topic : Introduction, Objective, Concept, Defining Value Chain

and Supply Chain, Functions, Drivers, Leveraging Supply
& Value Chain Partners, Conclusions.

Stream : BBA 3rd

Submitted to : ABHRANIS DAS

ACKNOWLEDGEMENT

I would like to express my deepest appreciation to all those who have

contributed to the completion of this report. First and foremost, I would like
to thank my subject teacher Mr. ABHRANIL DAS, whose guidance, insights,
and feedback were invaluable throughout the entire process. I am also
grateful to the college management and the BBA faculty for providing me with
the opportunity to undertake this project and for their support in facilitating
the necessary resources to carry out the research. Additionally, I would like
to thank the participants who generously shared their time and insights with
me, without whom this research would not have been possible. I am also
thankful to my colleagues and friends who provided me with moral support
and encouragement throughout the process. Finally, I would like to
acknowledge the efforts of my family for their unwavering support,
understanding, and patience during the demanding period of this project.
Thank you all for your contributions towards the successful completion of this
report.
ABSTRACT
This project report examines the supply chain and value chain operations within,
analyzing key processes from raw material procurement to final product delivery,
with a focus on identifying potential areas for improvement in efficiency, cost
reduction, and value addition to enhance customer satisfaction by optimizing
activities across the entire value chain, considering both internal operations and
external stakeholder interactions.
OBJECTIVE
The main objective of a supply chain is to continually improve the efficiency
and reliability of a production process. The main objective of a value chain
is to enhance the customer experience — which creates competitive
advantage. Consider product packaging. Supply chain thinking leads to
using the least expensive packaging that can be made flawlessly while
protecting the product. A value chain mentality should lead to that plus a
great unboxing experience. There’s a big difference between a customer
cutting themselves on plastic clamshell packaging and being so delighted
by their packaging experience that they post an unboxing video of their
purchase to YouTube.
DEFINITION OF SUPPLY CHAIN AND VALUE CHAIN MANAGEMENT
A supply chain is mostly physical. It’s a set of linked companies and
individuals that produce a product or a service. In the case of manufactured
products, supply chains involve obtaining raw materials and taking the
steps necessary to transform them into finished goods and deliver them to
the customer. Value chains focus first on what a customer wants; using
that as a starting point, a value chain analysis finds ways to add value to
the product throughout the supply chain in the form of qualities or functions
that customers would prize.
Introduction to Supply Chain Management

• A supply chain consists of all parties involved, directly or

indirectly, in fulfilling a customer requirement.

• All facilities, functions, activities, associated with flow and

transformation of goods and services from raw materials to
customer, as well as the associated information flows.

• An integrated group of processes to “source,” “make,” and

“deliver” products.

• Supply chain management (SCM) is the management of the flow of

goods.
• The goal or mission of supply chain management can be defined
using Mr. Goldratt’s words as “Increase throughput while
simultaneously reducing inventory and operating expense”
Introduction to Value Chain Management
A value chain is a series of consecutive steps that go into the creation of
a finished product, from its initial design to its arrival at a customer’s
door. The chain identifies each step in the process at which value is
added, including the sourcing, manufacturing, and marketing stages of its
production.

• A value chain is a step-by-step business model for transforming a

product or service from idea to reality.
• Value chains help increase a business’s efficiency so the business
can deliver the most value for the least possible cost.
• The end goal of a value chain is to create a competitive advantage
for a company by increasing productivity while keeping costs
reasonable.
• Value chain theory analyzes a firm’s five primary activities and four
support activities.
FUNCTIONS OF SUPPLY CHAIN MANAGEMENT

• The five functions of supply chain management include the

following:

1. Purchasing

The first function of supply chain management is purchasing. In the

manufacturing process, raw materials are required to produce goods
and products. It is important that these materials are procured and
delivered on time so that production can begin.

2. Operations

Demand planning and forecasting are usually required before

materials can be procured, as the demand market will dictate how
many units to be produced and how much material is required for
production.
3. Logistics
Logistics is the part of supply chain management that coordinates
all aspects of planning, purchasing, production, warehousing, and
transportation so that the products will reach the end-consumer
without any hindrances.
4. Resources Management
Production consumes raw materials, technology, time, and labor.
Resource management ensures that the right resources are allocated
to the right activities in an optimized manner. This will ensure that an
optimized production schedule is created to maximize the efficiency
of the operations.
5. Information workflow
Information sharing and distribution is what keeps all of the other
functions of supply chain management on track. If the information
workflow and communication are poor, it could break apart the entire
chain. Many disruptions that arise in supply chains can be prevented
by increased visibility and communication.
 FUNCTIONS OF VALUE CHAIN MANAGEMENT

The functions of value chain management include :

• Inbound Logistics:
Managing the receipt, storage, and distribution of raw materials and
components.

• Operations:
Transforming raw materials into finished products through manufacturing
or production processes.

• Outbound Logistics:
Storing and distributing finished products to customers.

• Marketing and Sales:

Strategies to attract and retain customers through advertising,
promotion, and pricing.

• Service:
Providing post-purchase support such as maintenance, repair, and
customer service.
DRIVERS OF SUPPY CHAIN MANAGEMENT

Production
This driver can be made very responsive by building factories that have a
lot of excess capacity and use flexible manufacturing techniques to
produce a wide range of items.

Inventory
Responsiveness can be had by stocking high levels of inventory for a
wide range of products. Additional responsiveness can be gained by
stocking products at many locations so as to have the inventory close to
customers and available to them immediately.

Location
A location decision that emphasizes responsiveness would be one where
a company establishes many locations that are close to its customer
base. For example, fast-food chains use location to be very responsive to
their customers by opening up lots of stores in high volume markets.

Transportation
Responsiveness can be achieved by a transportation mode that is fast
and flexible such as trucks and airplanes. Many companies that sell
products through catalogs or on the Internet are able to provide high
levels of responsiveness by using transportation to deliver their
products often within 48 hours or less.

Information
The power of this driver grows stronger every year as the technology
for collecting and sharing information becomes more wide spread,
easier to use, and less expensive. Information, much like money, is a
very useful commodity because it can be applied directly to enhance the
performance of the other four supply chain drivers.
DRIVERS OF VALUE CHAIN MANAGEMENT

Consumer Behavior
No discussion on drivers of change, particularly the need for businesses to
collaborate in order to serve a more discerning marketplace, can overlook
the influence that consumers have had upon the agri-food industry.
Consumers’ purchasing decisions are based on a complex set of reasoning.
They also hold more power than anyone else in the value chain. Their
purchasing decisions determine which businesses, retailers through to
primary producers, will be successful and profitable.

Changing Business
Environment Fragmentation of the consumer market means that the
markets of developed nations no longer value ‘boat-loads’ (Hughes, 2004)
of undifferentiated products. Government intervention in market protection
and international trading arrangements is lessening. So is ease of accessing
financial resources. Improved logistic capabilities are resulting in increased
international competition;

Technology
Technology, including Information and Communication Technology (ICT),
has increased risks associated with companies following a ‘go-it-alone’
strategy and become a driver for increased collaboration between
companies.

Cost drivers:
Minimizing costs within each value chain activity through efficient
processes, economies of scale, and effective supplier management .

Innovation drivers:
Investing in research and development to create new products and
services, and improve existing ones.
Leverage Supply Chain Efficiency for Value Chain Partner
While the two terms —supply chain vs value chain— are distinct, the two
models complement each other. While the supply chain forms the
backbone of efficient product or service delivery, the value chain provides
a granular view of individual activities. That said, supply chain efficiency is
key to optimizing the value chain; efficient processes lead to cost savings,
which can then be used to invest in activities that add value and improve
efficiency.
At Surgere, we understand the need to streamline supply chain operations
while driving value creation. We engineer solutions that leverage IoT and
RFID technology to equip you with real-time intelligence on your supply
chain operations. This enables you to make informed decisions that
optimize the entire value chain and ensure enhanced business outcomes.
Conclusions

In conclusion, while a "supply chain" focuses on the efficient movement of

goods and materials from suppliers to customers,

a "value chain" goes further by analyzing how value is added at each stage of
production, ultimately aiming to create greater customer value and achieve
a competitive advantage through strategic optimization of processes beyond
just logistics; essentially,

A supply chain is a necessary component of a value chain, providing the

infrastructure to deliver products, while the value chain focuses on
maximizing the perceived worth of those products to the customer .
Reference & Bibliography

➢https://openai.com/index/chatgpt/
➢https://www.scribd.com/document/1263661
67/Supply-Chain-Management-and-the-Value-
Chain
➢https://www.gep.com/blog/technology/suppl
y-chain-vs-value-chain