ENTREPRENEURSHIP

Detailed explanation-1: -Supply chain surplus is the value addition by supply chain function of an organisation. It is calculated by the following formula: Supply chain surplus = Revenue generated from a customer-Total cost incurred to produce and deliver the product.

Detailed explanation-2: -The main difference between a value chain and a supply chain is that the supply chain deals with building the product and getting it to the consumer, while the value chain looks for ways to enhance the product’s value as it moves along that supply chain.

Detailed explanation-3: -A ‘supply chain’ refers to the system and resources required to move a product or service from supplier to customer. The ‘value chain’ concept builds on this to also consider the manner in which value is added along the chain, both to the product / service and the actors involved.

Detailed explanation-4: -The profit of a company is not only determined by the revenue it generates, but also by the efficiency of its supply chain. The supply chain is responsible for ensuring that a company has the raw materials and resources it needs to produce its product or service.