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value chain

the full sequence of activities that create a product

In Business & Marketing

In more detail

1. (noun) the series of steps and processes a company uses to create a product or service, from raw materials to final delivery to the customer

2. (noun) the sequence of activities that add worth or value at each stage of producing and selling something

Examples

• 1. The company improved its value chain by finding more efficient suppliers and reducing shipping costs.
• 2. Understanding the value chain helps businesses identify where they can cut costs or improve quality.

How to use value chain

Value chain is a business and economics term used to describe how a company creates value by coordinating activities from raw material sourcing through final customer delivery. It emphasizes the sequential processes and their cumulative effect on product worth. The term is more strategic and comprehensive than similar concepts like supply chain, which may focus more narrowly on logistics.

Register: formal

Common phrases

• value chain analysis
• value chain management
• along the value chain
• upstream in the value chain
• downstream in the value chain
• optimize the value chain

Synonyms

supply chain · production chain · value stream · business process · distribution chain

Word family

value-added · chain

A common mistake

Learners sometimes use value chain and supply chain interchangeably, though supply chain is narrower and focuses more on procurement and logistics, while value chain encompasses all activities that add value.

Nearby in Business & Marketing

stickiness, throughput, touchpoint, white label

Keep going

How to remember the words you read · Spaced repetition, explained