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Nbm0

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Submitted By banderj
Words 865
Pages 4
First of all i will describe what is value chain and non value chain. The value chain is set of activities that has any price that the company spend on a raw material or a service to make a value for the customer. If I say value for the customer I mean the money that the company spend to make a final good or a service for the customer. For example, wood pulp and converting it into something that people are prepared to pay money for like paper or table and so on. The non value chain on the other hand have costs but no effect on customers and they are referred to as hidden factory. Any decision maker should know the difference between these values in order to know how to spend money give the customer more value.

After we know the difference value and non value chain and how to give the customer more value " by spending more money in value chain". Now we should learn about chain of customers. After knowing how to give the customer more value or not.It's depends on the plan of the company. We must know that spending money on value chain is not the only way to give us a good quality product or service. The idea of chain of customers is to finish all the processes on a branch before opening another prance in order to improve the quality of the product or service.We can't deal with more than one branch if we didn't finish all the processes of the old ones.

After having an organized processes and a good plan to spend money between value chain and non value chain we must focus on supply chain management which includes all the activities that must take place to get the right product into the right consumer’s hands in the right quantity and at the right time from raw materials extraction to consumer purchase. SCM focuses on planning, forecasting, purchasing, product assembly, moving, storage, distribution, sales and customer service. SCM professionals

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