Thesis: Chain- wide resource optimization of Value Chain

Sample Thesis Paper

Value chain management facilitates the evaluation of traditional resources like labour, materials, machinery etc. Value chain management optimizes time and financial resources. The resource optimization of value chain stresses on the point that the organization must focus on its core competencies and they must realize the fact that supply chain has more steps than the traditional vertical model in which a single firm integrates all the aspects of the supply chain as a result of which the profit margins of that firm becomes smaller because firms focuses on few core competencies (Lambert 2008).

That is why the profit margins in the value chain are disintegrated and they are distributed throughout the value chain because of the fact that each step in the value chain needs to share a smaller chunk of overall margin pie (Lambert 2008). In order to fulfil this requirement the value chain management add optimized value in each step that is the errors and the waste of each step is reduced. This strategy was implemented in a proper way by Amazon when they interpret this situation in such a manner that they eliminate steps in the supply chain by eliminating the retailers. Therefore, the entire chain in the value chain is managed carefully and each link is carefully optimized and evaluated.

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