4. LINK Method: Value Chain Mapping
By the end of the session, you will be able to:
- define relationships and interconnections between the value chain actors
- identify the flow of products, services, information and payments
- identify entry points or key leverage points to improve the value chain.
Topic: LINK Methodology: the New Business Model principles
LINK Methodology aims to promote the engagement of smallholder producers with markets by guiding a multi-stakeholder process of shaping or upgrading inclusive trading relationships with the potential to create a win-win situation for all actors involved. For that reason, four key tools are designed to kick off, implement and conclude a participatory innovation process in the iterative manner of a ‘design-testcheck-act cycle’.
The value chain map is used to understand the macro context of markets and the businesses that link rural producers with buyers. The value-chain map enables us to visualise:
- the actors directly involved in the chain
- the roles and functions of these actors and the interconnections between them
- indirect actors and how they support the functioning of the chain
- links, breaches or blockages between the actors
- product flow
- information flow
- price formation
- distribution of benefits
- external influences on the value chain.
List the key characteristics of a value chain.
Draw a value chain based on your business.