Value chain analysis and managing supply chain costs

Abstract

The study aimed to reveal the effect of value chain analysis (VCA) of internal and external activities to manage and reduce product costs along the supply chain (SC) in industrial facilities in the Red Sea State in Sudan from the point of view of managers, financial managers and accountants there, from the basic dimensions of value chain analysis represented by VCA of suppliers' activities, VCA for product design activities, VCA for production activities, and VCA for customer activities. The supply chain costs are defined in just-in-time (JIT), target costing (TC), and activity-based costing (ABC). The study revealed that analyzing VCA contributes to managing and reducing product costs along the supply chain by exploiting the interrelationships and overlap between the value chain analysis and the supply chain for each supplier's production and customer activities.