Posted in Operations and Supply Chain Terms, Total Reads: 18445
Definition: 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.
Eg: 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.