The value chain of each organization is incorporated within a greater value system.
This includes the value chains of its suppliers, distributors and retailers. Ultimately, the value
chain of all actors involved in the chain should be coordinated for the system to work
efficiently and to deliver seamless products. If any of the partners fails to deliver appropriate
value and products, the entire chain can break and the system can even collapse. If the
water supplier of a hotel fails to deliver water, for example, or if the tour operator goes into
liquidation, the entire system will probably collapse. Therefore, It is critical that value chains
are carefully constructed, balanced, managed and robust.
The value chain of each organization is incorporated within a greater value system.This includes the value chains of its suppliers, distributors and retailers. Ultimately, the value chain of all actors involved in the chain should be coordinated for the system to work efficiently and to deliver seamless products. If any of the partners fails to deliver appropriate value and products, the entire chain can break and the system can even collapse. If thewater supplier of a hotel fails to deliver water, for example, or if the tour operator goes intoliquidation, the entire system will probably collapse. Therefore, It is critical that value chains are carefully constructed, balanced, managed and robust.
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