Value chain management is an emerging concept whose sole objective is to create value for the customer. This article introduces the basic concepts of supply chain management and value chain management and discussess, in the light of the chan ging success factors, whether value chain management will supersede supply chain management. A case study is also presented to illustrate and support the conclusions arrived at. This article presents arguments on how value can be unleashed from the middle of the pyramid to open up new doors to fortune.

In today's world, companies can outperform their rivals only by providing greater value to their customers. Value of a product or service is evaluated by the customer in relation to the lifetime cost of the product compared to the benefits he derives from it. Companies do try to achieve this in many ways. One of the current methodologies adopted by successful companies worldwide is Supply Chain Management. Supply Chain Management focuses on controlling and managing operational activities of a business to improve the value delivery process. The supply chain consists of suppliers, warehouses, manufacturing centers, distribution centers and retail outlets, and the entire logistics network. Using Supply Chain Management, one can improve the operational efficiency and cut down the overall costs of the chain. Basically, it looks at total system optimization as against optimization at the company level only. However, it does not focus on innovation and creativity at the product and process level, which will go a long way in adding value to the customer.

Today's business has become completely `customer centric'. The emerging concept of value chain goes beyond the supply chain and focuses on the customer. Value chain focuses on how businesses can provide innovative products and services based on customer wants and needs. Hence, the question arises whether Value Chain Management (VCM) will supersede Supply Chain Management (SCM). This article discusses SCM and VCM and attempts to answer this question in the light of the changing business scenario and supports the conclusion with the help of a case study.

Supply Chain Management (SCM) is a set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed in the right quantities, to the right locations, and at the right time, in order to minimize system-wide costs while satisfying service level requirements. (David Simchi-Levi, et al., 2004). SCM consists of all the assets, information and processes that provide supply (Exhibit 1). It is a complex network of facilities spread geographically and a dynamic system that evolves over time. The supply chain relations change over time as do the demand and capabilities.

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