Supply and Value Chains

In many situations, the term value chain is used, often in place of supply chain, as in value chain mapping. We first encountered the term through 

Another source of confusion is the dehnition of the terms upstream and downstream in the supply chain. For a company in the middle of the supply chain with trading partners on both sides, we refer to the incoming side, the traditional domain of the procurement function, as the upstream side and the outgoing side, the domain of distribution, marketing, and sales functions, as downstream. To the end-user, the whole linked chain is a supply chain although that user only interacts with the last link. 

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Companies in this part of the Oil Gas supply and value chain face very different market circumstances than those operating in the chemical refining and/or downstream businesses. In the upstream exploration and production business there is no effective market other than a spot market. In the upstream businesses all that is, and can be, produced is sent to market and receives the prevailing market price. This means that continuous analysis of market and environmental circumstances is much less important than in other industry sectors and, indeed, when compared with what is required in the chemical refining and downstream businesses in this industry. Given that many of our respondents came from the exploration and production side of the industry (Agip, Amerada Hess, BG, BP, Enterprise, Lasmo, Ranger and Shell) this probably accounts for this apparent anomaly in the results. 

Value chain management is the integration of demand, supply and value decisions from sales to procurement using strategy, planning and operational processes. 

Development of local and international markets and value chain development, linking demand and supply, quality management and processing technology. 

The chapter addresses the development cycles of e-services. The service cycles progress from supply and demand chains, to value chains, to service value chains, and finally to service value networks. The service cycles enable service businesses to develop competitive business solutions overtime. The chapter also offers a balanced scorecard mechanism to manage e-services. 

J S OP vendor The bottom line fora [Company] implementation is to help our customers derive value from their supply and demand chains. By improving forecasts, cutting planning cycle time, aligning the enterprise, and enabling more proactive management our customers have realized ROI on their [Company] investment in less than 8 months from the go-live date. As such, an investment in [Company] can be implemented and pay for itself well within a year. 

Thus, there can be a separation of operations management into two broad streams the management of production including service, and the management of operations in service industries where only some rndimentary knowledge (if any) of mannfactnring is required. But irrespective of whether a manager is involved primarily in production or service, a total system approach is needed based on the supply or value chain philosophy. 

The quant-based combinatorial optimization accounts for the entire value chain and its associated processes, that is for all of its inputs, outputs and system parameters. Based on these data an integrated and complete model of a company s supply chain is derived, detecting in advance what impact a decision or an external influence will have on the total system. 

The first question targets an enhancement of supply chain management towards value chain management with integrated volumes and value planning. The second question is related to a specific industry type as basis to... 

The study provides valuable insights for research and industrial practice. At the beginning, the author reviews different management concepts in the value chain either demand, supply or value-oriented. The author proposes an integrated framework for value chain management as an interdisciplinary structure consisting of separated concepts. 

Management concepts in the value chain are the generally relevant research fields for the work. Value chain as a term was initially defined by Porter disaggregating a firm into its strategically relevant activities in order to understand the behavior of costs and the existing and potential sources of differentiation . Porter s value chain consists of a "set of activities that are performed to design, produce, market, deliver and support its product (Porter 1985, pp. 33-40). Developed management concept areas for the value chain can be classified by specialization on values, demand or supply ... 

Value-oriented management concepts focus on determination of ex-post profitability in the value chain as well as decision support value indicators based on given demand and supply volumes. Sub-fields are financial accounting, profit and cost controlling (Gotze 2004 Gotze/Bloech... 

Porter s value chain is one basis for the development of the supply chain. The term supply chain was created by consultant Keith Oliver in 1982 according to Heckmann et al. (2003). Compared to the company-internal focus of Porter s value chain, the supply chain extends the scope towards intra-company material and information flows from raw materials to the end-consumer reflected in the definition of Christopher (1992) a supply chain is a network of organizations that are involved through upstream and downstream linkages in different processes and activities that product value in the form of products and services in the hand of the ultimate consumer . Core ideas of the supply chain concept are ... 

Concluding, the supply chain and supply chain network concept extends Porter s value chain concept towards cross-company networks in order to improve efficiency and delivery service, minimize costs and inventories... 

In market economies, however, companies are confronted with competition when selling to customers and they use the market competition when purchasing from suppliers. On the other hand, market constellations can change, when many customers compete for limited resources or raw materials provided by few large suppliers. In these situations, prices, values as well as ensured profitability within each company are decisive for the sustainable survival of the business. While the supply chain emphasizes the supply aspects including ensured supply and availability (Corsten 2001, p. 94), an essence of Porter s value chain underlining the value focus and the supply chain concept is required as basis for the study. 

The value chain in the study focuses on the company internal value creation in the primary activities consistent to the company-internal supply chain structures by Meyr et al. (2004) and Rohde et al. (2000) as illustrated in fig. 6. 

Distribution locations are included in the company-internal value chain network, if distribution volumes and values are under the control and in the books of the company independent if the warehousing and transportation is outsourced to 3PL distribution companies or not. Therefore, a company value chain network is enclosed with a central control of all volume and value information for the respective network and clear interfaces to customers and suppliers out of the network. While the internal value chain network is focused on material flows evaluated with respective internal costs, dedicated interfaces to multiple suppliers and multiple customers are characterized by material flows, financial flows and mutual instead of one-directional exchange of information as proposed for supply chains by several authors. 

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