5. Input Logistics Activities Output
•Natural
Resources
(land, facilities
Equipment)
•HR
•Finance
•Information
•Marketing
Orientation
(competitive
Advantage)
•Time and
Place utility
•Efficient move
to customer
Customer service
Demand forecasting
Distribution
Communications
Inventory control
Materials handling
Order processing
Parts and service support
Plants and warehouse selection
Procurement
Packaging
Return goods handling
Salvage and scrap disposal
Traffic and transportation
Warehouse and storage
SSDDMM –– CChh 1155 TTaattaa MMccGGrraaww HHiillll PPuubblliisshhiinngg 55
6. TThhee VVaalluuee CChhaaiinn
SSDDMM –– CChh 1155
Company Infrastructure
Organization, people, methods
Systems & technology
Procurement
Inbound
logistics Operations Outbound
logistics
Marketing
& sales
Service
Source: Michael Porter
TTaattaa MMccGGrraaww HHiillll PPuubblliisshhiinngg 66
Primary activities
S
UPPP
ORT
margin
margin