The AERU Value Chain Compass

Chain Leadership

Competencies

A value chain is made up of partners who bring different competencies to the chain. At its simplest level, this includes production, processing, manufacturing, exporting, importing, and retailing. Within those general headings, there are other important competencies, such as capability to understand the values of the final consumers and the capability to understand the values in the chain’s production and processing systems.

Thus, a key task of a value chain’s governance is to identify potential commercial partners who have competencies needed to create value.

Questions for developing a value chain

• What are the key competencies required for the value chain to create value for its final consumers?

• Who are potential partners who have demonstrated they have and can use these key competencies?

• Does the value chain leverage these competencies to their best advantage, or is there a key competency missing that is constraining the value chain’s vision?