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Value Chain Management (VCM)

Definition - What does Value Chain Management (VCM) mean?

Value chain management (VCM) is a strategic business analysis tool used for the seamless integration and collaboration of value chain components and resources. VCM focuses on minimizing resources and accessing value at each chain level, resulting in optimal process integration, decreased inventories, better products and enhanced customer satisfaction.

Techopedia explains Value Chain Management (VCM)

VCM was introduced in the mid-1980s by Michael Porter, a business strategy authority and longtime Harvard Business School professor. VCM has evolved into a universally applied business management strategy, and is a powerful strategic planning tool that extends from organizations to distribution and supply networks.

VCM requires the following components:

  • Integrated chain strategy, planning and scheduling
  • An efficient supply chain
  • Full and interdependent chain resource management and optimization
  • Integrated customer insight data and information

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