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What Is a Value Chain?

Understand how a Value Chain fits into the supply chain

Value chain refers to the chain of activities a company performs to add value to a product or service. In a supply chain, this could include a series of activities from inventory arrival at the warehouse through the shipment and delivery of a product to the hands of the end customer, business or store. Once a value chain is established, a value chain analysis should be performed on a routine basis to ensure efficiency or identify opportunities for improvement.