According to Stephen P. Robbins, author of 'Management', Value Chain Management is "the process of managing the entire sequence of integrated activities and information about product flows along the entire value chain." There are six requirements that must be met for the Value Chain Management process to function properly.

Coordination and Collaboration

To increase efficiency within an organization, coordination and collaboration is essential. Coordinate work groups to ensure efforts are not duplicated. Utilize the theory that the whole is greater than the sum of its parts by collaborating with other groups and individuals to achieve a common goal.

Technology Investment

Technology plays a large role in the manufacturing and distribution. With outdated technology, such as old computers or machinery, an organization's competitiveness is weakened due to a loss in productivity.

Organizational Process

In value chain management, every aspect of an organization's process is identified. Improvements in processes through better technology and greater procedural knowledge are important to the present and future success of a company.


Strong leaders are crucial to the success in value chain management. Good leaders earn the respect of their employees through sound management practices. Conflict management, motivation and direction are traits that strong leaders display.

Employee/Human Resources

A central hub of information on benefits, company policies, hiring and conflict management is also necessary for a corporation to function properly. Without a knowledgeable and active human resources department, employees may feel they don't have a voice within the company. Many times, an employee is hesitant to go to a direct supervisor with issues; a human resources employee can act as a liaison in many situations.

Organizational Culture and Attitudes

Organizations that foster strong cultural identity with positive attitudes tend to attract and retain top employees. Regular corporate sponsored activities are suggested to help build cultural unity and keep attitudes positive while boosting productivity.