Is a value chain, supply chain, and demand chain management the same?
A. Value chain management, supply chain management, and demand chain management are terms used to describe slightly different business strategies. Value chain management takes the perspective that members in the chain earn their place by adding value to the product or service. In return, members are compensated for the value they add. Supply chain management is used when a system employs the most efficient and effective means for delivering a product or service to the customer. Demand chain management looks backwards at the chain. It strives to deliver products and services to a market, ensuring an adequate demand for a product. This demand pulls the product through the chain, rather than producers/processors pushing their product into the market place. The Alberta VCI encompasses the meanings of all three terms in describing value chain management. Regardless of the strategy applied, value chains begin and end with the market. They are driven by market pull. Q.
