How to Use a Value Chain

One tool that is frequently underutilised is the value chain. The value chain dissects the organisation, allowing you to understand how its components fit together, which enhances your comprehension of the client organisation. A traditional value chain includes support activities such as firm infrastructure, human resources, technology, and procurement, in addition to core activities.

When developing your solutions, you'll primarily focus on these core activities: inbound logistics, operations, outbound logistics, marketing, sales, and service. While these may vary slightly depending on the specific situation you’re examining, the value chain enables a detailed analysis of the processes involved. It helps you examine what occurs between inbound logistics and operations, as well as between operations and outbound logistics.

By identifying these processes, you can determine what changes are necessary, whether within them or as they transition from inbound logistics to operations. This approach allows you to develop more comprehensive solutions. It's important to note that the value chain is often overlooked by teams when creating their solutions, especially in contexts like case competitions.