Value Delivery Network - Definition & Example
What is Value Delivery Network?
Value delivery network is a part of supply chain of a company and includes all its direct participants involved in production, distribution, marketing, customer service, etc. for given geographical area.
It a chain of system where after each system more a more value is added to the product or services thereby increasing its overall value for the customer.
Each system is partnering with other system to provide better value to the customer. Production system uses feedback sales history to produce the right product in required quantity. The value created through such partnering depends upon the quality of relationship between the systems.
Value Delivery Network Example
Companies like Fiat have improved its position in North America by partnering with Chrysler to improve its delivery network. This has helped Fiat gain vital market share in highly competitive market with very low investment.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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