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Value Chain

Value Chain. Training on SME Cluster Development and Value Chain Integration 29 Oct – 2 Nov 2012, Mekong Institute, Khon Kaen , Thailand. Dr. Nittana Southiseng SME Development Specialist Mekong Institute 29 Octobter 12. What is Value Chain (VC)?.

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Value Chain

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  1. Value Chain Training on SME Cluster Development and Value Chain Integration 29 Oct – 2 Nov 2012, Mekong Institute, KhonKaen, Thailand Dr. Nittana Southiseng SME Development Specialist Mekong Institute 29 Octobter 12

  2. What is Value Chain (VC)? A mechanism that allows producers, processors, and traders—separated by time and space—to gradually add value to products and services as they pass from one link in the chain to the next until reaching the final consumer (domestic or global). Exists when the actors in the chain operate in a way that maximizes the generation of value along the chain.

  3. Source: UNIDO (2010). Value Chain Diagnostics for Industrial Development

  4. Elements of Value Chain Firm Infrastructure Human Resource Management Support Activities MARGIN Technological Development Procurement Service Marketing & Sales Inbound Logistics Outbound Logistics MARGIN Operations Primary Activities

  5. Value Chain Actors • Value chain actors are the firms and individuals who assume different functions in the value chain, engaging directly in production, processing, trading and marketing.

  6. Value Chain Mapping Products Value chain actors and their functions Flow of products and end markets Business interactions Service provision

  7. Value Chain & Business Support Services

  8. What are the potential business in your country? Who are the actors that participate in businesses across value chains? Map the flow and their business interactions

  9. Value Chain Actors

  10. Mapping Cashew Value Chain in Tanzania

  11. Value Chain Diagnostics A method for understanding how firms under given framework conditions operate and coordinate their businesses to ensure that primary materials are transformed, stored, transported and reach end-consumers in certain form and quality. VCD aims at identifying how the productivity of chain activities can be improved, either through improved technologies, organizations, institutions to better coordinate the various stages of production and distribution, and meet consumer demand.

  12. Sourcing and supplies Value Chain Dimensions in Diagnostics Production capacity and technology End-markets and trade Governance of value chains Sustainable production and energy use Value chain finance Business environment and socio-political framework

  13. Value Added Value Added A process takes inputs and performs value-added activities on those inputs to create an output. The success of actors in value-adding their production lies in the ability of these actors to be part of the networks Farmer/ Producers/ Cultivation • Manage • Value adding • Distribution Trader/collector Processing Retailer Wholesaler Exporter Consumer Wholesaler in export market • Manage • Value adding • Distribution Distributor in export market Retailer in export market

  14. Value Added Process

  15. Value Added Process Determine the boundaries of the process and • A process map is a graphical representation of all of the steps involved in an entire process or particular segment of a process. Redesign the process using the knowledge gained in the first nine steps. Involve representatives from each major activity associated with the process in the improvement effort. Mapping Value Added Process Eliminate the non–value-added activities. Map the process by identifying non–value-added activities & value-added activities.

  16. Value Adding Market Trend Fish Convenient Healthy Less environmental impact Creative Banana Dried Som Tum “Thai Smile”

  17. Examples of Thai Agricultural Creative Products ‘Kessara Bakery Shop’has an idea to bring Pla Shaon, local fish in Singburi, as an important ingredient for cake and ice cream Dried Som Tum “Thai Smile”– vacuumed and dried food – keeps the freshness of vegetables for Som Tum. Cooked in microwave oven for a few minutes, you can enjoy the authentic Thai Som Tum in terms of taste, sweetness, as well as preserved nutrition ‘Proud’ is the Thai sweet brand name. Its selling point is to package Thai traditional sweets and dried fruits in nice-looking forms. It is suited for gifts in every occasion.

  18. Difference between Supply Chain and Value Chain

  19. Thank You

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