Researchers are interested in value chain analysis to identify the different opportunities for cost savings. The literature have been narrow in scope and addressed specific problems; however none has addressed the need for a general framework that can be used as a standard template in the supply chain cost management and optimization, though Dekker and Goor (2000) said that the goal was to develop a model that would allow direct comparison of specific activities between firms, such as warehousing activities costs. There was no indication in the literature of a cost model that can identify all costs and cost drivers through the supply chain. Some firms built models to analyze the effect of changes in activities but only with limited activities such as logistics. The purpose of this research is to create a general framework that can express the cost data for the partners of the supply chain in similar terms. The framework will layout the common activities identified within the firm and the relationship of these activities between the partners of the supply chain, and the framework will identify the effect of changes in activities on other partners within the supply chain. Cost information will help in making decisions about pricing, outsourcing, capital expenditures, and operational efficiency. The framework will be able to track cost through the chain, which will improve the flexibility of the supply chain to respond to rapidly changing technology. The framework will help in developing product strategy paradigms that encompass the dynamics of the market, in particular with respect to the technology adoption lifecycle.