Linkages not only connect value activities inside a
company but also create interdependencies between
its value chain and those of its suppliers and channels.
Acompany can create competitive advantage by
optimizing or coordinating these links to the outside.
For example, a candy manufacturer may save processing
steps by persuading its suppliers to deliver chocolate
in liquid form rather than in molded bars. Justin-
time deliveries by the supplier may have the same
effect. But the opportunities for savings through coordinating
with suppliers and channels go far beyond
logistics and order processing. The company, suppliers,
and channels can all benefit through better recognition
and exploitation of such linkages.