Describe the concept of Value Chain Management, its advantages and disadvantages.
Value Chain Management is also referred to as VCM. VCM is defined as the integration of all resources of the company including information, labor, materials, logistics, and facilities. These resources are integrated into time-responsive, capacity managed solutions that would minimize the waste and maximize the financial resources of the company. In simple words, an effective and efficient value chain management minimizes the waste and improves the value of the product for the customers.
There are the following advantages of VCM:
1. It improves the ability of a company to capture and manage customers.
2. It leads to better product planning and research.
3. It makes the production process standardized.
4. It improves vendor management.
There are the following disadvantages of VCM:
1. Sometimes it leads to lost vision and strategy of the company.
2. Sometimes integration leads to losing sight of how the activities relate to each other.
Get Answers For Free
Most questions answered within 1 hours.