QS Study

Value delivery network is a part of the supply chain of a company and includes all its direct participants involved in the production, distribution, marketing customer service, etc for gave geographical area.

It a chain of a system where after each system more a more value is added to the product or services thereby increasing its overall value for the customer.

Each system is partnering with another system to provide better value to the customer. Production system uses feedback sales history to produce the right product is required quantity. The value created through such partnering depends upon the quality of the relationship between the systems.

Eg: Companies like Fiat have improved its position in North America by partnering with Chrysler to improve its delivery network. This has helped Fiat gain vital market share in the highly competitive market with very low investment.