Do you know what your company’s key activities are? It is to be admitted that it is not always easy to distinguish the elements with real added value for our operations and for our customers. In order to stand out and optimize your production process, the implementation of a chain of values is essential.
The value chain is defined as the collaborative link between the different links in a production line. It aims to reduce (or eliminate) waste and non-value-added activities for your customers. It helps reduce operating costs and maximize the efficiency of your company’s organizational structure. Interesting, isn’t it?
Here’s how to put it into place effectively in your company.
Step 1-Make a statement of your current situation.
This step is essential to determine by what means you will be able to gain ground on your competitors and keep this advance.
Step 2- break down the different links in your chain.
By having all these steps in front of you as well as identifying the different players, you will target what strengths to keep and share what are the activities with real value added.
Step 3-Identify what you need to reduce or eliminate.
Exit the unnecessary work! Stop the waste and put aside the weaknesses of your process.
Step 4-Establish a strategy and action plan.
They will be your guides to allow you to choose the right tools to reach the desired solution.
Traditional chain or value chain?
The value chain differs from a traditional string by several elements. First, the chosen process emphasizes the spirit of collaboration, trust and communication between the partners involved. The link between each link in the chain is crucial. It is important to establish the influence that a creative activity of value can have on another activity in the chain. Then we have to deploy the necessary means to optimize the link between these activities. Communication and coordination with external partners must also be included in the reflection.
In a value chain, highlight on the quality of the product as well as on the added value of the different activities of the chain. The costs and profits are thus put in the background. The energy is also deployed to obtain a product that stands out and differs from competitors, rather than copying what is already on the market. The customer is also at the centre of the concerns. The product offered is intended to meet a need expressed by the consumer.
Finally, the organizational structure of the value chain is interdependent. His philosophy is based on optimising the value of the chain and all its links, rather than on silo optimization.
It is important to know that setting up a value chain requires some essential ingredients. Trust, patience and determination will allow you to achieve concrete and satisfying results.
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