What is the value grid?

The value grid is a modification and combination of supply chain management and market focus. This concept essentially illustrates the methods that companies use to increase their available markets while moving from linear suppliers to multiple supply sites. The concept of the grid value began to obtain land in the second part of the 20th century, when the increased telecommunications and faster transport facilitated worldwide trade and marketing. Since then, it is increasingly rare to find companies that use the methods of insert supply. In a very basic example, the company acquires raw materials and sells them to other companies. This company changes raw materials into a specific product, which then sells to consumers. When one buys something, this customer could literally watch each part back into his original raw form. While these methods have worked very well for centuries, modern businesses will be significantly more complicated than many of their predecessors.

Now one company can get raw materials from several different places around the world. Slight differences in harvesting or environmental methods can make one substance suitable for one product, but not for the others. In addition, companies create a wide range of products. As society expands, it slowly moves into neighboring areas to increase its profitability. For example, a company that produces saws can begin to produce other similar tools until it has a variety that leads from hand tools to industrial tools.

This increase in complexity is called a value grid. The old system was described as a string, the items moved from place to place in an increasingly complex form. The new system describes how one company can have many different suppliers, can be delivered or even operated in conjunction with the serious industry.

In addition to replacing the supplier chain, it also places increased emphasis on sales and marketing. TraditionallyThe supplier chain ended at the final seller and customers were out of its influence. Now the value grid includes not only final customers, but also how these customers interact with the product. In addition, the value grid also emphasizes the expansion of the brand to other industries.

all connects all to strengthen companies. The company is protected from changes in the market and the sale of the finished product and selling the finished product of a wide range of people. If a particular supplier closes, the company can rely more on others until the situation decides.