Value chain

What is a value chain?

The value chain is also referred to as the value chain or process chain. It describes how value is created through a concatenation of activities and how processes are derived from this. The value chain consists of primary activities and secondary activities.

The primary activities make a direct value-adding contribution to the creation of a product. These include:

  • Inbound logistics
  • Production
  • Outbound logistics
  • Marketing and sales
  • Customer service

The secondary activities serve as supporting measures, which are considered necessary prerequisites for the creation of the products. These include:

  • Company structure
  • Human Resources
  • Technology development
  • Procurement

Logistics is an important part of the value chain in a retail company. Efficient control of goods flows and storage can reduce transportation and warehousing costs.

Images:

Logistik Lexikon Wertschöpfungskette

Image: imassimo82 / Shutterstock

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