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Hi,
I don’t fully understand the difference between the two?
Please could you advise?
Thank you!
Monica
The supply chain is the chain that provides you with your raw materials or the goods that you sell.
For example, supermarkets that sell sandwiches will be interested in the company that delivers the sandwiches (must be kept cold), the company that makes the sandwiches, the farms that grow the fillings, the bread-maker and the farm that grows the cereal. They are concerned about this whole chain because quality and customer satisfaction depends on all elements of the chain working properly.
The value chain is Porter’s chain with the primary activities and the support activities. Only a small part of that is dealing with raw material. It also concerns outbound logistics, sales and marketing etc. Together the activities operate to add value.
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In additon there is upstream supply chain dealing with activities between the organisation and suppliers of raw materials. Then there is downstream supply chain dealing with activities between the organisation and its customers.
Think of the whole process of activities between the supplier through to the organisation in the middle and then down to the customer as one continuous flowing stream.
To deal with its suppliers the organisation needs to flow upstream and to deal with its customers the organisation needs to flow downstream.Yes indeed, I was concentrating on the upstream supply chain (ie the flow of goods from suppliers and their suppliers). The flow of goods then continues downstream to customers.
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