Value Chain Management

A business's value chain is the sequence of activities — from procurement through production to sales and service — that create value and incur cost. Understanding where value and margin actually arise, and where they leak, is the basis for improving competitiveness.

The firm maps the value chain, analyses the economics across it, and identifies where to act.

Value chain management covers, including:

• Mapping the activities across the value chain
• Where value, margin, and cost arise at each step
• Margin leakage and inefficiency
• Opportunities to improve and to align with strategy
• An improvement roadmap with priorities

1. 01

   Map

   Lay out the activities and flows across the chain.

2. 02

   Analyse

   Examine the value and cost at each step.

3. 03

   Identify

   Find the leakage and the improvement opportunities.

4. 04

   Recommend

   Build a prioritised improvement roadmap.

PBT helps you see and strengthen the economics of your value chain.

• A clear map of where value and cost arise
• Margin leakage identified
• Practical improvement opportunities
• A prioritised roadmap
• Scope, deliverables, and fees agreed in writing up front

• What does value-chain analysis tell me?

  Where value and margin are actually created across your operations, and where cost and inefficiency erode them — so improvement effort goes where it counts.

• How does this differ from cost management?

  Cost management focuses on reducing cost; value-chain analysis takes a wider view of value and margin across the whole chain, of which cost is one part.

• How long does it take?

  A value-chain study typically takes a few weeks depending on the breadth of operations.