Logistics chain is a value chain

Value can be created with logistics. In addition to supply chain it is also referred to value chain, because supply chain management aims to increase value for customer at the lowest total cost. Added value means a product, its part or related to it service e.g. product transport from store to home. Value chain consists of various organizations in the supply chain and in principle, each party must provide its own added value to the product. All don’t try to do everything, but each focuses on its core know-how.

Up to 80 per cent of a total time in the supply chain can be a value unproductive time. According to value chain thinking, it is aimed at eliminating or at least reducing all value unproductive things. It is often easy to see things that create value. These include, for example, delivery time and flexibility. It is much more difficult, however, to detect value unproductive phases and work, such as duplication of work made by employees and waiting times of various stages. It is obvious that companies should pay more attention to value creation tasks such as promotion of co-operation.