Value Chain Mgmt.

AFFILIATED SERVICES GROUP, LTD.

Value Chain Management has a broad scope:

From the "supplier's supplier" to the "customer's customer"

vcm scope.gif (35445 bytes)

Value Chain Management addresses multiple flows

All physical flows (materials and products)

Both forward and reverse

All information flows

Including the "Voice of the Customer"

Fundamental principles of Value Chain Management:

	Optimize the whole, not the pieces
	Broader than "cradle to grave" ("lust to dust")
	Delight our customers in a way that improves the financial returns of all value chain participants

Value Chain Management utilizes a broad range of toolkits:

	Continuous Flow Manufacturing (CFM)
	Strategic Procurement
	Integrated Logistics
	Integrated Product and Process Development (IPPD)
	Customer Value Management

	Supply Chain Management
	Information Technology Management
	Strategic Marketing
	Integrated Sales Management
	Integrated Project Management
	Activity Based Management
	Theory of Constraints

Value Chain Management (VCM) increases profits while easily integrating other improvement initiatives.

	Created an agile supply chain with 15% lower costs and 50% faster time to market by expanding from TQM, JIT & TPS to Value Chain Management.
	Increased market share 60% by improving the integration and effectiveness of distribution, production, purchasing, sales and marketing.
	Integrated five acquisitions ($250 million in sales) into client's operations, cutting costs 10%.

Value Chain Mgmt.