A value chain is a model used to analyze a company’s core activities and processes in order to identify potential sources of competitive advantage. It takes into account all the activities involved in creating a product or service, from the initial research and development to the final delivery of the product or service to the customer. By examining the entire chain, a company can identify ways to create a competitive advantage and increase profits.
This value chain template is designed to help supply chain leaders, managers, and teams map out the value of their processes across the whole supply chain. It allows them to identify areas for improvement and increase the efficiency of their operations in order to create a competitive advantage and increase profits.
A focus area is a broad target, such as reducing inventory costs, increasing efficiency, or improving customer experience. It serves as a foundation for the objectives and projects that support the strategy. This template is designed to help supply chain leaders, managers, and teams define their focus areas and map out the objectives, projects, and KPIs that will help them optimize the value of their processes across the whole supply chain.
Examples of strategic focus areas that could fall under a Value Chain could be: Reduce Inventory Costs, Increase Efficiency, and Operational Efficiency.
Objectives are specific, measurable goals within a focus area. For example, an objective within a focus area of reducing inventory costs might be to reduce excess inventory. Once objectives are defined they must be supported by projects and KPIs that will help the team measure progress and success.
Examples of some objectives for the focus area of Reduce Inventory Costs could be: Reduce Excess Inventory, and Increase Inventory Utilization.
KPIs are specific, measurable targets that provide the team with a way to measure the success of their objectives. For example, if the objective is to reduce excess inventory, the team can set a KPI to decrease forecast error from 10% to 5%. This helps the team track their progress and measure their success.
Projects are the actions or initiatives that will help the team reach their objectives and KPIs. For example, if the objective is to reduce excess inventory, the team can implement a project to increase forecasting accuracy to help them reach their KPI.
Cascade Strategy Execution Platform is an online tool that helps supply chain leaders, managers and teams map out the value of their processes across the whole supply chain. It is designed to help teams define their focus areas, objectives, projects and KPIs, and track their progress and success with ease. With this platform, teams can quickly and easily see tangible results from their value chain strategy.