In the real world, of course, value chains are much more complex than this. For one
thing, there tend to be many more links in
the chain. Take, for example, the case of
the furniture industry (Figure 2). This
involves the provision of seed inputs,
chemicals, equipment and water for the forestry sector. Cut logs pass to the sawmill
sector which gets its primary inputs from the machinery sector. From there, sawn
timber moves to the furniture manufacturers
who, in turn, obtain inputs from the
machinery, adhesives and paint industries and also draw on design and branding skills
from the service sector. Depending on which market is served, the furniture then
passes through various intermediary stages until it reaches the final customer, who
after use, consigns the furniture for recycling.
In the real world, of course, value chains are much more complex than this. For onething, there tend to be many more links inthe chain. Take, for example, the case ofthe furniture industry (Figure 2). Thisinvolves the provision of seed inputs,chemicals, equipment and water for the forestry sector. Cut logs pass to the sawmillsector which gets its primary inputs from the machinery sector. From there, sawntimber moves to the furniture manufacturerswho, in turn, obtain inputs from themachinery, adhesives and paint industries and also draw on design and branding skillsfrom the service sector. Depending on which market is served, the furniture thenpasses through various intermediary stages until it reaches the final customer, whoafter use, consigns the furniture for recycling.
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