INBOUND LOGISTICS
OPERATIONS
OUTBOUND LOGISTICS
MARKETING & SALES
SERVICE
VALUE CHAIN
FIRM INFRASTRUCTURE
HUMAN RESOURCE MANAGEMENT
TECHNOLOGY DEVELOPMENT
PROCUREMENT
MARGIN
{
SUPPORT ACTIVITIES
PRIMARY ACTIVITIES
{
Activities concerned with the availability of inputs to the product or service. These inputs may be raw materials, goods, services, skilled and knowledgeable people.
All of the activities that transform the inputs into the product or service offered to customers. For products these would include production, testing, packaging etc. For services it includes all of the physical or mental operations that go into the service offering
The activities that make the product or service available to the customer. For products this would be warehousing, stock control, distribution etc. For services it often means bring the customer to the service (unless they're delivered electronically)
The activities that ensure customers are aware of the offering and are able to purchase it.
Activities which enhance the value of the product or service when it is purchased and used by customers. This would include installation, training, user support, maintenance and repair.
The combined effect of the primary and support activities is to add sufficient value to the inputs to maintain a profit margin. Clearly, the margin is influenced by the effectiveness of the activities as well as by the cost of inputs and the value of the results to the customer.
The structures and systems concerned with planning, finance, accommodation, legal issues, communication, culture etc.
Activities concerned with selecting, recruiting, training, developing and rewarding people within the organisation.
Activities which supply any form of technology to primary activities. This can include design and development of products, processes or resources.
Processes for acquiring resource inputs to the primary activities. These activities may be centralised or distributed.