Managing the value chain
How do we manage the value chain? There are two key aspects to managing a value chain. First, we must manage the supply chain or what travels across the value chain. This field of study is referred to as Supply Chain Management (SCM). SCM involves determining what supplies and their quantities are needed to meet customer demand, what processing approaches should be used, and how to get the finished products to the end user. The second key aspect is Customer Relationship Management (CRM). CRM focuses on managing all interactions with the customer. The goal is to anticipate and meet the needs of the customer and build a loyal customer base. You can quickly see that the two are inter-related. You may also see that SCM and CRM are also closely related to the marketing function. This highlights an important concept. All business functions and processes are inter-connected and interdependent.
