Value chain analysis: an approach to supply chain improvement in agri‐food chains

Abstract

Purpose To develop an innovative methodology to apply lean value chain improvement techniques to a complete supply chain for a food product from farm to consumer. Design/methodology/approach Action research based on a UK case study involving farmers, a food processor and a major retailer. Findings Value stream analysis (VCA) highlights significant opportunities to improve supply chain performance, profitability and relationships. Research limitations/implications Lean/VCA methodologies can be readily applied to the retail and processor elements of food chains. However, further research is required to apply the concepts to farm operations. Practical implications Subsequent to this research, VCA techniques have been increasingly adopted in UK agri‐food sectors including meat, dairy, cereals and horticulture. Originality/value Application of lean concepts and VCA in the agri‐food sector. Development of a multi‐echelon supply chain improvement methodology.