Supply Chain DevelopmentFacilitator’s Training Day

Sustainable Value Chain AnalysisSVCA

A Business Tool for the NIRDP Supply Chain Development Measure?

What is Sustainable Value Chain Analysis?

• Defines value creation• Identifies value adding activities in the chain• Assesses scope to behave collaboratively and

create competitive advantage• Analyses environmental impact along the

chain• Evaluates ability to create, realise and

distribute value effectively along the chain.

What’s different about SVCA?

SVCA sits above traditional SCD/ LEAN/ Six Sigma/VSM in that;

• It views the complete supply chain and the product lifecycle as a ‘connected whole’

• It focuses on sustainable competitiveness and resilience

• It manages environmental impact• It promotes capacity building, collaboration and

innovation.

What can SVCA achieve ?

• Competitive advantage that is both commercially and environmentally sustainable

• Effectiveness in maximising value for consumers• Efficiency in adding value in the product lifecycle• Strategic collaboration and operational co-

operation in the value chain• Continuous co-innovation throughout the supply

chain.

Key concepts…

• ‘Whole chain’ approach• Consumer value – downstream focus (demand –pull)• Conflict resolution/negotiation• Collaboration – open partnerships• Co-Innovation – collective focus• Sustainability – market access and competitive

advantage.

5 key themes…

• What product attributes do consumers value?• Where in the chain’s material flow is this value

created?• What are the main environmental impacts of

the chain?• How is information generated, shared and

used ?• Do relationships in the chain enhance strategic

alignment?

7 stage process…

1. Engaging the whole chain (SG)2. Mapping the current state 1 (lifecycle)3. Initial review of evidence (critical issues)4. Mapping the current state 2 (focus in)5. In depth analysis (material/ information/

relationships)6. Reporting (potential outcomes/ opportunities)7. Implementing (project/ change programme).

Thoughts…

• How can this work in the NI context?• Where might be a good place to start?• What are the incentives for this type of

approach?• What are the barriers to this type of

approach?• Do we try to do something with this?