In the private institution's development community, Value Chain Management is defined as a way in which a value provision process occurs and takes up a commodity as the epicenter of interest. The merchandise can be agricultural or anything else. This activity is aimed at increasing the quality of merchandise so that the consumers may receive the best products and services. However, Porter came up with a chain description that is universal to all business activities. He categorized them into two main groups, for instance, the primary group and support group.
In the primary group, activities are usually related directly to the source of their make. It is made up of inbound logistics, operations, outbound logistics, marketing and sales, and finally service. Inbound logistics relates to all activities that receive, store, and distribute inputs from within the organization. The main primary factor in the creation of value, in this case, is relations with suppliers. You need to maintain good relationships to receive the best products from them. Operations entail activities that transform input into an output. The operating system is responsible for creating value and producing the best products for sale to customers. Outbound logistics is responsible for service and product delivery to customers. This can both be internal or external. When it comes to marketing and sales, all the activities engaged in persuading customers to accept your product are involved in this. This process outlines the advantages of your goods from other firms. Service entails maintenance of the value of goods and services delivered to customers.
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Finally, the support group is meant to back-up the primary group, and it entails Procurement, HRM, Technological Development, and Infrastructure. Procurement is what the organization engages itself in to acquire resources for its operations, for instance, looking for vendors. HRM deals with employees' matters in most cases. It ensures that they deliver quality, and they are all treated fairly. Technological development entails safeguarding the organization’s base of knowledge and also updating the organization on possible technological recommendations to ensure the creation of value. Besides, there is infrastructure that entails the company's supportive system. And how it executes its day to day operations. As a result, I concur with the post as it outlines the purpose and roles of Porter's Value Chain.
References
Tools, M. (2014). Porter's value chain: Understanding how value is created within organizations.
