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.
