value chain

  

Definition

Interlinked value-adding activities that convert inputs into outputs which, in turn, add to the bottom line and help create competitive advantage. A value chain typically consists of (1) inbound distribution or logistics, (2) manufacturing operations, (3) outbound distribution or logistics, (4) marketing and selling, and (5) after-sales service. These activities are supported by (6) purchasing or procurement, (7) research and development, (8) human resource development, (9) and corporate infrastructure.

Use value chain in a sentence

  • There was a highly sought managerial candidate that could keep the vital but failing value chain going for the company whose bottom line was beginning to suffer, thereby keeping overhead in check.

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  • Knowing the value chain will help you set the correct price for your companies products or services to get the most profit.

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  • Sometimes as a product progresses and times change it will end up going up the value chain making it worth more and more.

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