This presentation slides describe about the what value chain is and it also describes about the value chain map. This slide explains how value chain helps in vietnam tea industry.

1. VALUE CHAIN ANALYSIS
VIETNAM TEA INDUSTRY
Bikram Adhikari
Dhurba Raj Pokhrel

2. SUPPLY CHAIN
• Supply chain is the process
between producing and
distributing the product, dealing
with the suppliers and logistics
of getting the product to market.
• A value chain is a set of activities
that an organization carries out to
create value or margin for
its customers.
• It helps to understand the
activities within business that
create value.
• Developed by Michael Porter
VALUE CHAIN
INTRODUCTION

3. VALUE CHAIN ANALYSIS
(VCA)
• Primary Activities of VCA
o Inbound Logistics
o Operations
o Outbound Logistics
o Sales and marketing
o Service and support
• Supportive Activities of VCA
• Human Resources
• Tech Development
• Procurement
It is a process where a firm identifies its primary
and supportive activities that add value to its
final product and then analyze these activities.
VCA helps in
• maintaining long term competitive position
of an organization.
• To sustain value for money in its products or
services (competitive advantage).

4. SOLUTION
VITENAM TEA INDUSTRY
CHALLENGES
• Unequal distribution of power
and allocation of costs and margins in
tea value chain
• Need to foster the
integration and participation of the
poor in the tea chain.
• Develop a comprehensive map of
value chain to understand the
characteristics of the chain actors and
the relationships among them, of the
flow of tea through the chain.

5. TEA
VALUE
CHAIN

6. Chain
Actors
% added cost %profit %retail
1. Framers 14.88 16.4 15.5
2. Processors 45.04 11.9 26.31
3. Dry Tea Traders 20.28 27.04 24.4
4. Wholesaler 11 31.4 22.53
5. Retialer 8.8 13.16 11.26
COST AND MARGINS FOR DRY
TEA, 2014

7. CONCLUSION
• The financial positions of actors indicated that the costs and margins are
shared unequally in the chain.
• This inequality is due to the fact that one actor invests more in a chain could
gain high profit than its counterpart investing less.
• Functional upgrading (one actor gaining more from the chain by taking
on additional functions) should be done as an effective way to improve the
livelihoods of the disadvantaged.
• By linking tea production, processing and marketing, producers or
processors can earn a higher return for their products.
• Access to market information, therefore, could help farmers to update new
farming methods, improve tea quality, get the latest information about tea
price and, therefore, strengthen their bargaining power.

8. THANK YOU !!