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The value chain describes the full range of activities which are required to bring a product or service from conception, through the different phases of production (involving a combination of physical transformation and the input of various producer services), delivery to final consumers, and final disposal after use.
The value chain framework encompasses five primary activities -- inbound operations, operations, outbound logistics, marketing and sales, and service -- and four secondary activities -- procurement and purchasing, human resource management (HRM), technological development and company infrastructure.
The goal of a value chain is to identify the efficiency and effectiveness of each step in your processevery part of making and selling a product or service. Then this analysis can help you make it better and more valuable for the customer.
In value-chain analysis, primary activities include human resource management and procurement.
Primary Activities Inbound logistics include functions like receiving, warehousing, and managing inventory. Operations include procedures for converting raw materials into a finished product. Outbound logistics include activities to distribute a final product to a consumer.
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