What is global value chain?
represents the flow of production
(starting from raw material until its final consumption)
at each stage value is added —> focus
gives company the ability to create value exceeeding the costs
all stakeholders at all stages relevant
What is the difference to global supply chain?
Supply chain:
Create efficiency (Convert labor and materials effieciently to maximisze profit)
complex relationship btw. companies and its suppliers
Aim: How do products get from A to B?
Focus: Logistic
analyzes efficiency, reducing costs and how timely delivery can be ensured
What are challenges of global value chain?
sustainability
inequality
hyper specialization
politics
dependence
What is mapping the GVC?
Determining the who and what
looking at how and why factors (governance, institutions) are linked together by analyzing the role certain factors play in influencing location, development and competitiveness of a product
What are the structural parts of the GVC?
Value adding activities
Supply chain stages
End markets
supporting environment
What includes value adding activities?
R&D (high value adding)
Services
Marketing
Design
Purchasing
Distribution
Manufacturing
High value adding
medium value adding
Low value adding
Very low value adding
What includes the supply chain stages?
Material/inputs:
Resources and materials used for porduction of goods and services
raw materials (Minerals, water); synthetic materials (plastic, chemicals)
Component/Intermediate
goods used in production process but not sold
Final product
Ready for sale
consumer or capital goods
Distribution/Sale
Activities with the aim to get product to consumer
Selling and delivering goods and services to end-consumer
What are end markets?
Categories: Product, geographic and buyer specific characteristics
Example: Electronics can be separated in Consumer ectronics, medical or automotive electronics
In apparel industry the requirements of the products are different from industrial buyers and consumer retail market.
What includes supporting environment?
NGO´s & Standards
Government agencies
Infrastructure & Finance
Education, Testing & Training
Business, Information & Technology Services
Trade & Professional Associations
Last changed4 months ago