A value chain is a linked set of value-creating activities beginning with basic raw materials coming from suppliers to a series of value-added activities involved in producing and marketing a product and service, and ending with distributors delivering final goods to the consumer. RNR Consulting performs a value chain analysis to examine a company in the context of the overall chain of value-creating activities of which the firm may be only one part.  The value chain analysis helps evaluate the possibilities for our clients to move forward or backward along the value chain in order to reduce cost, guarantee access to key raw materials, or to guarantee distribution.

RNR Consulting also performs internal value chain analysis as each of the company’s product lines has its own distinctive value chain.  The process of product manufacturing and distribution employs purchased inputs, human resources, and the utilization of technology. This process uses and creates information, such as buyer data (order entry), performance parameters (testing), and product failure statistics.  The process also generates financial assets such as inventory and accounts receivables, or liabilities such as accounts payable. The physical creation of the product is considered a primary value activity and the product sale and distribution to the buyer, as well as the after sale activity is considered support value activity.

The examination of the individual value activities contributes for better understanding of the company’s strengths and weaknesses. We determine whether the company’s cost is high or low relative to competitors. The internal value chain analysis helps RNR Consulting identify any core or distinctive competencies and the future opportunities for improvement of our clients.

Clients we have successfully assisted in Supply Chain Management and Manufacturing include: Antelope Valley Transit Authority; City of Cleveland, Division of Water; Toledo Area Regional Transit Authority; Stark Area Regional Transit Authority; Greater Cleveland Regional Transit Authority; and Undercar Express.