A deep reflection emerges when you realize that your recent relationships haven't been ideal and discover they share something in common, such as infidelities. You know that instead of viewing the relationship as an "us," it has always maintained a "you and me" dynamic. This leads to reassessing your entire relationship approach, which is no easy task. The trauma experienced creates a fatalistic view, particularly to the point of thinking that an utterly faithful relationship is almost impossible to achieve.
However, this analysis isn't about personal relationships but business relationships, specifically within the distribution chain. We live in a world that doesn't stop, where markets are, to some extent, unpredictable. Nevertheless, there may be a genuine commitment to look out for each other within this context.
FROM DISTRIBUTION TO VALUE
In the business world, two fundamental concepts are often confused: the distribution and value chains. Both are related but distinct. The distribution chain primarily focuses on operational aspects, aiming to optimize the efficiency and effectiveness of transferring products between the various actors within industrial relationships. This chain focuses on the logistical aspects of the process, ensuring that products arrive on time and in the best possible condition.
On the other hand, the value chain emphasizes how each link contributes to the product's final value. This chain has a more integrated and strategic focus, as it seeks operational efficiency and prioritizes creating value for the end customer. Thus, every part of the process plays an equal role in creating a product that maximizes its value.
Although these terms are sometimes used interchangeably, it's crucial to understand that they are not synonyms. The distribution chain model emerged first and focused on optimizing logistical processes. In contrast, the value chain concept expanded this vision by considering the impact of all parts of the process on the final product.
In summary, while the distribution chain focuses on ensuring the efficiency of product movement, the value chain aims to integrate and maximize the contribution of each stage of the process to offer a product that optimally satisfies the end customer's needs (Tom Yorke, 2023).
IS IT FICTION?
Many might think that a large industry or company could not adopt the value chain concept instead of a distribution chain, as this could seem contradictory to the principle Philip Kotler advocated about suppliers' bargaining power. According to Kotler, relying on a limited number of suppliers for specific materials or services can lead to additional costs and bottlenecks that make the entire process slower and more expensive. This principle underscores the need for flexibility and diversification in the supply chain.
However, this statement is not necessarily accurate. While it's true that large companies need to consider operational efficiency, some companies successfully integrate the value chain. The key lies in each company's organizational culture. Some prioritize integration and collaboration within their value chain, considering that each actor in the process is essential for creating a high-quality product. On the other hand, some companies focus on operational efficiency and cost reduction as their primary objective without delving too much into collaboration between all actors in the chain.
Repsol, S.A., a Spanish energy and petrochemical multinational, is an example of a company that has successfully integrated the value chain.
This company has adopted policies reflecting a commitment to the environment at all levels. Its philosophy integrates into the value chain, not only with internal collaborators but also with contractors, suppliers, and strategic partners. Repsol promotes a safe and sustainable work environment, focusing on health, safety, and environmental respect.
In line with its commitment, Repsol adhered to the United Nations Voluntary Principles on Security and Human Rights since 2000, ensuring that its operations in sensitive areas are conducted under a framework that respects human rights. Additionally, Repsol recognizes the fundamental role of its suppliers within the value chain, which led them to establish a Supplier Code of Ethics and Conduct. This code promotes reciprocal and beneficial relationships for all parties involved. The company has also implemented a Sustainable Development Goals (SDGs) Boost Plan, aligned with its goal to achieve net-zero emissions by 2050 and with the United Nations 2030 Agenda (REPSOL, 2024). Learn about its value chain here.
Although, in theory, everything seems in place and no further action is needed, the reality is that adopting policies and initiatives like those of Repsol involves constant review and improvement. If the company did not comply with its policies, its collaborators, contractors, suppliers, strategic partners, and clients could demand accountability. This relates to a previous conversation with Guy Chambers, who was asked what should be done when a company fails to meet its commitments. His response was clear: Demand accountability. The next question: To whom? "Any company that doesn't follow the UN Guiding Principles on Business and Human Rights or doesn't respect its corporate code of conduct should be reported. Ultimately, the leader (CEO) of the organization is responsible for the actions and behaviors of the company. This is difficult, especially for large organizations. But it's vital. If it's not the leader, then who is responsible?"
"GIRL, WAKE UP"
Today, consumers have more power and the possibility to be heard. Technological advances have allowed consumer communities to emerge organically, and these communities reject unwanted intrusion. To connect with these consumers, brands must ask for permission, and more than acting as persistent sellers, they must behave like sincere friends. In the end, without a functioning business, there are no customers; without customers, there is no business. This horizontal relationship allows brands to continue using traditional strategies but is always accompanied by transparency.
With social media in control, each of us, as consumers, has the power to evaluate and question brands' promises. Only those who achieve community consensus and operate transparently will avoid being perceived as a façade and will not be considered false or hypocritical (Ramírez, 2021).
As we have seen in the theoretical writings of this section, it's not just about pointing out flaws but recognizing that each of us has duties and rights, and it's up to us whether we use them correctly or not. Let's remember that every action or omission makes us, in some way, "complicit" in the results. It's not about analyzing our guilt for past events, but how we act today to improve tomorrow.
Satoricha ~
References
REPSOL. (2024). Cadena de valor: qué es, beneficios y para qué sirve. Repsol. Retrieved December 22, 2024, from https://www.repsol.com/es/energia-futuro/personas/cadena-de-valor/index.cshtml
Tom Yorke. (2023, Agosto 3). 'Value Chain' Definitions and Characteristics. Cambridge Institute for Sustainability Leadership (CISL) |. Retrieved December 22, 2024, from https://www.cisl.cam.ac.uk/files/pdf_-_value_chains_definitions_2024.pdf
Ramirez, M. D. (2021, 01 05). “MUNDO NUEVO” DEL MARKETING 4.0. Investigación Y Desarrollo, 3, 73 - 82. https://dicyt.uajms.edu.bo/revistas/index.php/investigacion-y-desarrollo/article/view/9
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