MGT 496 Week 1 Discussion 1

The attached file is an example of an army Value Chain. In my supply position in the Army I play a role in the Army Value System. I use the Property Book Unit Supply Enhanced (PBUSE) system to order supplies from the Defense Logistics Agency. When items need to be turned in or resold on the civilian market, we use the Defense Reutilization Marketing Office (DRMO). These separate entities combine together to form the Army’s Value Chain. As stated in the text “By this joining together of value chains into a value system, in effect we create a supply chain. Where the value actually is, according to Porter, is dependent on the way a customer uses the product and not just totally on the costs incurred in buying, making and moving it” (Emmett, 2005, p 10). In our case the demand is dependent on the amount of students that are forecasted in a given period. The students are the consumers and we order enough office supplies and training supplies based on the projections. Although this system works, I would recommend we acquire supplies beyond our projected demands to accommodate unplanned extra students. I would also open up the venders available for purchasing to include more civilian vendors. The nature of military contracts is not conducive to getting the best price possible for products.   
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