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Growth through value chain strategies

The global value chains of the world economy are currently being challenged by the corona crisis. The term “value chain” is not the one that should be criticized. Thinking in terms of value chains is also a decisive path for new growth of a company on a regional basis. If the company directors manage not only to think about the interests of the direct suppliers and customers, but also to include all stages from sustainability for natural resources to added value for end consumers, they are well on the way to initiate strategically shaped growth. You can read here how this can be implemented with my accompaniment:

 

Accompaniment of value chain strategies

 

1. What do I understand by value chains?

More and more corporate leaders today claim to want to lead their organization with a particularly high level of sustainability. For me, this not only includes economic management that considers the needs of employees, direct suppliers and customers. This is certainly already a first level of sustainability if this group shows an emotional attachment with the organization, from which the employees, suppliers and customers themselves, but also the company, benefit. My approach goes beyond this three-stage “partial value chain”. From my point of view, sustainability is only lived when the entire value chain, from the original production of the primary products to the creation of benefits for the end consumer, is included in the entrepreneurial activity. The protection of natural resources, the social self-determination of people and the safety of products for users should be the focus of the strategies of the companies and organizations involved in the value chain. I am convinced that such companies have better growth opportunities and prospects.

 

2. What are the opportunities in sustainable thinking in value chains?

My more than 30 years of experience in many areas of the value chains of the international agri-business and food industry has taught me, that it leads to more sustainable success if, you as an entrepreneur with your part within the value chain, develop strategies by considering the benefit of the end user. Products are created for the “value creators” who follow in the chain and who are always closer to the benefit of the users, which enable them to optimize their production even more purposefully based on customer benefit. If my customers can bring more benefit to their customers and the subsequent customers through to the end consumer with my products, I can increase added value for my company and grow.

 

Only in the last few years have I learned that it can also trigger growth in the other direction of the value chain up to primary production or raw material extraction, when you take into account the concerns of the pre-suppliers, their employees and, above all, the natural resources. If you consider this in your strategies at your later stage of the chain, on the one hand there will be growth and success, because the end consumers are increasingly demanding these benefits of the products. But there is also growth when the preliminary products are made from sustainably sourced raw materials, with resource-saving primary production in agriculture and considering the pre-suppliers and their employees during the preliminary production. In most cases, the products are of higher quality, more durable and more reliable and thus lead to more security for me in my place in the value chain.

 

  1. What do I do when redesigning or realigning your value chain strategy?

  • Accompanying the customer in analyzing the current value chain situation and developing different possible future scenarios in workshops (preparation and moderation), formulating orders for studies, conducting research in my network

  • Accompanying the customer in the formulation of new value chain strategies for their own organization through preparation, organization, and moderation of workshops first internally (not only company management, also employees, to develop the strategies from within the company)

  • Further development of the strategy with external participation of other partners in the value chain (involvement of upstream suppliers, research institutions, customers and end users)

  • Implementation support as a project manager or moderator of the steering group

  • Coaching key employees in coping with changes in mindset

  • My branch focus: International agriculture and food industry

Let us create value in the chain for everyone involved and for natural resources: Then we create sustainability!