MUHAMMAD AFTAB AHMED (20191-

25490)

Innovation in Supply Chain Management

(SCM 6103 | MBA-7436)

Assignment 1- Porter’s Value Chain

Analysis

Submitted To : Sir Hamza Qazi

Assignment Due Date: 06/21/20

 Assignment 1- Porter’s Value Chain Analysis

The above diagram shows Porter Value chain analysis, developed by Michael porter and
presented in his book named as “Competitive Advantage” in 1985.

This scheme classify organization into 9 activities further separate into two main categories
named as primary activities and secondary activities.

This value chain analysis take place in phases as mentioned below

1. Identify area to study

2. Make value chain
3. Gather and validate information
4. Redesigning of chain and action planning

Primary Activities
1. Inbound Logistics: Receiving, warehousing and routing of direct and indirect received materials.

2. Operation: Process of converting input into output by means of value addition

3. Outbound Logistics: Dispatching, delivering and fulfilling the demand across distribution
network.

4. Marketing and Sales: It involves value exchange process to generate revenue by means of
increasing sales.

5. Service activities: Activities that maintain and improve perceive customer value such as
customer support, gratuity and maintenance services.
Support Activities

1. Procurement: Sourcing and purchasing of direct and in direct material from PR to A/P invoicing.

2. Technology Development: Market research, product analysis and tools management to achieve
promised customer service level.
3. Human Resource Management: Talent acquisition, aligning cooperate goals with employee
target, learning and development of employees to cater future talent demand.

4. Firm Structure: Finance management, quality assurance and other legal activities needed for
smooth organization operations.