Value Chain Integration, and When Is More Revenue Not Good News?

摘要

Supply chain management by itself will not move the business to the higher value-added business. This paper has attempted to introduce some simple new terms that will allow business leadership to have a more balanced measurement of where to move the supply-demand dynamics to a higher zone for more profitable business. Size alone, market share by itself, perceived low cost of manufacturing, and higher revenues can actually destroy the potential of the business, and the markets that it chooses to participate. However, by using the value-driven model for a more holistic, interdependent business process and employing new tools, movement to that more effective business state is possible. Sometimes this is achieved with less, not more revenue.