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Integrated Value Chain

Integrated value chain have been described and introduced by the famous personality Michael porter in the year 1985 which describes certain terms and techniques:

1. Operations

2. Outbound logistics

3. Inbound logistics

4. Marketing & sales

5. Service

Operations: It is the process and the steps of transformation of goods and services that helps to produce the output as per the input. It means to transform inputs into outputs that are product and services.

Outbound logistics: This process mainly deals with the distribution stage but it includes most of the activities from collection to distribution. The first process is it requires the activity of collection, then it needs to store the warehouse and the final stage is to distribute those products.

Inbound logistics: This process talks about the relationship between the supplier and the firm which has the activities of supplies of raw materials, the receiving, delivering and storing as well keeping the raw materials safe. The distribution to manufacturing of these raw materials is also concerned.

Marketing and sales: This process includes the needs and requirements of the customer; the identification of the various needs of the customer as well as the demand of the customer which helps in generating the sales. These activities included to inform the buyer about the products or services to make them aware of the product or services. They create the customer needs and facilitate them for the purchase of that product.

Service: Service is the final step after the purchase, marketing and sales and it is given to the customer after giving them the delivery of the product. This is basically involved to solve the queries and problems of the customer which requires giving them to the customer after their purchase and they should not feel bad about your product or brand or your company so the service is needed when there is selling and the selling is incomplete without services.

The secondary activities which includes:

These above activities are supported by these manpower and sources: Firm infrastructure, Human resource management, Technology development, Procurement

The primary activities that offers a customer with the cost of the activities and with the profit margin from that activities which are described below:

Firm infrastructure consists of various department and function in the company like accounting, financing, planning, public affairs, quality management, general management, public affairs, government relations and many more. It helps the company’s to achieve the needs and controls of the system culture of the company and also the structure of an organization. It helps in the various parts and the departments of the company.

Human resource management: Human resource management deals about the internal task which has been associated with employee’s, with the people attached to them and it is the main part of the organization because it helps in recruiting, hiring, controlling the costs of the company, A good management always tries to enhance the skills of its employees by the help of co-ordination, proper training, developing their ideas and thoughts and managing them well. They reward him at the time of better performance with high awards, certificates, recognition like bonus, incentives, extra pay, and promotion as per performance. It analyses about the training and development part in the company to their employees and also helps in deciding the compensation of the employees. When an HR always appreciates and motivates the good work and provides the reward and recognition which motivate the employees and also speak about the respect of others then it is believed that in motivating its people, the environment becomes energetic and people feel good to work and the environment becomes happy along with the people.