How is value created?

Every business can be thought of as a “money machine.” On one end of this machine you have inputs; in between you have the value-added processes; and you have outputs on the other end. In the framework shown below, we have seven value-added processes – Design, Source, Make, Move, Store, Sell, and Service – which are the core processes that make up the “chain of value.” (This framework was developed by the Center for Intelligent Supply Networks at the University of Texas at Dallas.)

The seven core processes in the “money machine”

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