Value Chain Toolkit


The following items are a set of tangible tools, products and useful services to raise awareness, build capability and facilitate the uptake of a value chain approach within South Australia’s Agrifood industry.

The Value Chain Development Unit is continuing to build on this suite of tools.

DVD

The following DVD features the former Thinker in Residence, Prof. Andrew Fearne, and explores the following fundamentals of Value Chain thinking.

View the full video here (flv - 73mb)

FACT SHEETS

The following fact sheets were developed as part of a four-part series of articles, appearing in “GrapeGrowers & Vignerons”, looking at Sustainable Value Chains – why is it a good way to do business and where to start?

CASE STUDIES

As part of Professor Andrew Fearne's 'Thinker in residence' program a range of case studies were developed by the South Australian Food Centre to inspire food businesses.

Read the case studies

VALUE CHAIN ILLUSTRATIONS

Supply Chain

Traditional supply chains push products through to the consumer.

Value Chain Illustrations - Traditional Supply Chain

Not understanding the market

Trying to constantly hammer a square peg into a round hole is a struggle.

A better solution is to change the shape of the peg, or change the hole it is slotting into.  In other words, reshape the product or target a different market.

Value Chain Illustrations - Not understanding the market

Value Chain

In a value chain approach, it is the consumers that pull a product through demand.

The primary difference between a supply chain and a value chain is a fundamental shift in focus from the supply base and producers to the customer base and consumers.

Value Chain Illustrations - Value chain

Working together to reach consumers

In a sustainable value chain, businesses work together to reach a common goal – providing consumers with a product they want.

Value Chain Illustrations - Working together to reach consumers

Sustainable Value Chain Analysis

Sustainable value chain analysis follows a product from production to retail, to objectively assess how well all the businesses involved in making and delivering the product to consumers worked together, and what activities added value in the eyes of consumers.

The outcome is a clear direction for everyone to work together to maximise opportunities for adding value in line with what consumers want, and, where possible, to lower costs and environmental impacts.

Value Chain Illustrations - Sustainable Value Chain Analysis

Race to be sustainable and competitive

‘Clean and green’ demands are emerging from consumers, retailers, other stakeholders, along with national and international regulations.

There is an increasing need for more sustainable production systems, and is predicted to have far-reaching commercial and market access implications. 

However, decreasing environmental impacts in a value chain can potentially damage the competitiveness of a chain, if consideration is not given to the value consumers place on the activities and how value will be perceived if changes are made to production processes and product attributes.

Value Chain Illustrations - Race to be sustainable and competitive

Working together

A value chain approach places the needs and wants of consumers first.

By focussing on what consumers want, and working together to create a product, it is possible to increase the total value of the product.

In doing this, businesses are working together along the whole value chain to increase wealth for all businesses in the value chain (the whole pie). They are not competing with each other to increase their individual share of the value (slice of the pie).

Value Chain Illustrations - Working together

Sustainable Competitive Advantage

There are three critical elements to sustainable value chains – working together with the other businesses in the chain, understanding consumers and being environmentally sustainability.

While businesses might be working on one or all of these elements, the real benefit and sustainable competitive advantage is realised when all three are considered together.

Value Chain Illustrations - Sustainable Competitive Advantage

METHODOLOGY GUIDE

This is a step-by-step guide, outlining the process involved in undertaking a Sustainable Value Chain Analysis (pdf, 794.9 KB).

This methodology was developed as part of the “Vine to Dine” Project, a project instigated during Prof. Andrew Fearne’s Thinker in Residence program.