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It is not always easy to define what exactly is a value chain. Generally, the term refers to the full sequence of activities and steps needed for a product or service to be created and delivered. It can also be used when referring to perishable products such as food, which must go through the entire value chain from farm to table in order for it to be consumed.
A typical value chain includes many steps that create economic value for different stakeholders like producers, processors, distributors and retailers who will buy goods at one section of the chain then sell them at a higher price later in the process. The revenue generated by products going through these various points on their way from production line to retailer’s shelf is called gross profit margin.
Also read - What is value addition?
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