The document contrasts value chain development with supply chain management, highlighting that a value chain focuses on activities at the company level to create competitive advantage, while supply chain management encompasses the entire flow of goods and services across multiple stakeholders. Understanding the value chain is vital for effective policy analysis, as it aids in assessing economic, social, and environmental impacts, and identifying areas for improvement through public policy. The insights gained from this analysis inform stakeholders and enhance public policy decision-making.

1. VALUE CHAIN DEVELOPMENT VERSUS SUPPLY
CHAIN MANAGEMENT
SHINGIRAYI KONDONGWE (MSC ENERGY POLICY)
ENERGY FOR POLICY ANALYSIS.

2. VALUE CHAIN VERSUS SUPPLY CHAIN
MANAGEMENT
VALUE CHAIN SUPPLY CHAIN MANAGEMENT
 A value chain is a set of activities that a firm
operating in a specific industry performs in
order to deliver a valuable product or service
for the market.
 Value chain is MICRO, in the sense that it is
done at a company level.
 a value chain is a set of interrelated activities a
company uses to create a competitive
advantage.
 The idea of a value chain was pioneered by
American academic Michael Porter in his 1985
book "Competitive Advantage: Creating and
Sustaining Superior Performance."
 Supply-chain management (SCM), is
the management of the flow of goods and services,
involves the movement and storage of raw materials,
of work-in-process inventory, and of finished goods
from point of origin to point of consumption.
 Supply chain management is MACRO, in the sense
that it involves all different stakeholders and not only
at company level.
 a supply chain involves all parties in fulfilling a
customer request and leading to customer satisfaction

3. WHY VALUE CHAIN IS IMPORTANT IN POLICY-
ANALYSIS?
• In order to make decisions that are sound, feasible and reliable.
• We need to understand all the economic activities involved, from
production to consumption. Why? (a) Because that is the only way we can
be able to clearly look different economic, social and environmental
aspects of a product or service (b) identifying areas of potential
improvement of the value chain that can be introduced by means of public
policy measures; and (c) assessing the likely economic, social and
environmental impacts of the available policy options.
• Most importantly, Information generated through this analytical work
provides insights to stakeholders involved in the policy processes and
supports the public policy decision making.

4. Value chain video: company level

5. value chain: International development perspective (video): ILO