Andreeva T.V., Kurlykova A.V.Published in:
Journal of International Economic Affairs
– Volume 9, Number 3 (July-September 2019)

JEL classification: L66, M11, M21

Keywords: added value, enterprise value chain, food industry, performance management, value chain


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Abstract:

Territorial disunity of the participants of the value chain of the industry product has determined the need to revise the existing terminology. Under the influence of globalization, clustering, integration and import substitution policies, the value chain of the food industry, which activity began to extend not only beyond the region but also beyond the country, is also changing. Taking into account the changes, it is proposed to introduce a new term "a corporate value chain" (CVC), which is a sequence of actions of economic entities (organizations, corporations, holdings) to create added value within the raw materials, production and distribution links of the value chain of the industry product, operating in the region, the country and/or abroad. In order to assess the effectiveness of management of the value chain of the food industry product, a literary review of the available methodological approaches and a list of key indicators are defined. A system of indicators for assessing the effectiveness of management of the value chain of the food industry at the level of economic entities in the context of raw materials, production and distribution links, based on the process approach, the concept of value added and the system of balanced indicators, with the allocation of three attribute categories, is suggested. The indicators are as follows: performance indicators of business processes depending on the place in the chain; relative profitability indicators based on value added; performance indicators of the management process. Prospects of use and advantages of the offered system of indicators in comparison with the available methodical tools are defined.

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