what is value chain?
Value chain was first defined by Michael Porter.value chain also known as value chain analysis.
Value chain consists of the primary activities and support activities. the primary activities are the following:
1. inbound logistics.
2. outbound logistics.
3. operations.
4, marketing .
5. finally sales and service.
The support activities are the following:
1. procurement.
2. technology.
3. human resource department.
4.. infrastructure.
The value chain example:
In an manufacturing industry, the raw materials are converted into finished goods in each and every stage..
here the inbound logistics is to support for bringing the raw materials for the production.
2. Outbound logistics is for the transfer of finished goods to the desired locations from the factory.
3. operations is for performing the operations on the raw materials to convert into finished goods.
4. marketing is for the sale of goods to the customers by the customer needs and wants.
5. service department is doing the job of servicing the goods.
THE SUPPORT ACTIVITIES:
The procurement team purchases the materials from the vendor for production activities.
the HR team recruits the human resources for the production activities.
this is how the value has been added .
The value chain is one of most important in all the industry.
Value chain consists of the primary activities and support activities. the primary activities are the following:
1. inbound logistics.
2. outbound logistics.
3. operations.
4, marketing .
5. finally sales and service.
The support activities are the following:
1. procurement.
2. technology.
3. human resource department.
4.. infrastructure.
The value chain example:
In an manufacturing industry, the raw materials are converted into finished goods in each and every stage..
here the inbound logistics is to support for bringing the raw materials for the production.
2. Outbound logistics is for the transfer of finished goods to the desired locations from the factory.
3. operations is for performing the operations on the raw materials to convert into finished goods.
4. marketing is for the sale of goods to the customers by the customer needs and wants.
5. service department is doing the job of servicing the goods.
THE SUPPORT ACTIVITIES:
The procurement team purchases the materials from the vendor for production activities.
the HR team recruits the human resources for the production activities.
this is how the value has been added .
The value chain is one of most important in all the industry.
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