Multi-step value addition processes

Every product or service or even person has a certain amount of value. Similarly, we have certain amounts of requirements. That’s why we buy products or take services by giving money. Furthermore, we have to remember that money is the outcome. For example, we need a cotton shirt of 40 inches. In this case, our value is cotton and 40 inches. The manufacturer or seller fulfils your requirements. Similarly, if they sell you mixed cotton with 42, you’ll not buy. Value addition processes mean in single or multi-step processes we complete the targeted requirements of the customers through the products or services.

Processing of value addition

If we go through the supply chain then in easy language we can say, from raw materials to the final product with the help of material, equipment, money, manpower, etc we complete the client’s targeted requirements. In this process, we add value in different-different ways.

1. We will make products or give services to a specific group of people. So, in this way, we will make the product
2. Premium or non-premium product with the specific unique thing which others don’t have
3. Fast delivery or fast execution through the team with the help of operation
4. A specific technology which makes a customer’s life easy.
5. Different type of innovation or eco-system makes customers’ life easy.
6. Specific problem or upcoming problem we have solved through the product or services with the help of tech, manpower or other ways.

There are lots of ways when we will make products from the raw materials. Similarly, in the competitive market, we have to do our pre-analysis. In this case, leadership, analysis, proper people, and execution help to identify the values.

Input to output

At this point, we have to see two aspects. First, we have added value which is input, and second customers input which is our output. Through multi-step processes, we add value and people’s responses to the value addition.

1. We have given value to the product or services but customers’ requirements are different. In this case, changing our input is the must-needed job
2. The market’s input matters most. We can say the market’s response sometimes changes value addition processes.
3. Technology or new technology could play a vital role to shift value addition processes.

If changes happen or not we have to make sure that we have given targeted value to the product and services. This specific value completes the client’s requirements and we earn money.