Value is defined as the usefulness of the product/service received by the customer. Virtual value chains are a network of supply chains taking place by electronic means. Most businesses incorporate distinctive value chains to meet their specific goals and strategies. The supply and demand chain involves the most critical aspects of operation and creating value for its end users. The information collected creates an element of control and evaluation of the processes and ways to improve or completely change operations to work effectively. Suppliers, logistics, work flow, technology, communication and time management are examples of elements of the equation to creating value.
From the physical world to the virtual market, businesses go through different stages in the transformation to e-commerce. Dell and Zara substitute virtual activities for physical ones making transactions easier and valuable to customers. Dell’s “just in time” environment provides performance that entails production and ordering to merge, saving time and money.
Creating a virtual value chain:
Visibility – i.e. Frito handheld order computers created value through monitoring inventory, faster order processes which entail faster shipments.
Mirroring – Real time views of the supply chain. Fed Ex software for customers to schedule and track packages. Fed Ex lowered calls on orders, less admin., lower costs to company.
Value – improved services, quicker and faster delivery of goods/services.