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Chapter 3

Chapter 3.docx

6 Pages

Administrative Studies
Course Code
ADMS 4570
Lois King

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Chapter 3Value Chain AnalysisIt views the firm as a sequential process of valuecreating activities Creating value for buyers that exceeds the costs of production is a key concept used in analyzing a firms competitive position2 different categories of activitieso1 five primary activitiesinbound logistics operations outbound logistics marketing and sales and serviceo2 support activitiesprocurement technology development HRM and firm infrastructureeither add value by themselves of add value through important relationships with both primary acitivites and other support activitiesoshould always consider suppliers customers and alliance partnerscompanies add value by means of relationships among activities within the firm as well as activities outside the firm such as those activity associated with customers and suppliersoit should be applied to both manufacturing and operations firms Some factors of the five primary activitiesoInbound logistics location of distribution facilities to minimize shipping timesoOperations efficient plant operations to minimize costsoOutbound logistics effective shipping processes to provide quick delivery and minimize damagesoMarketing and sales highly motivated and competent sales forceoService effective use of procedures to solicit customer feedback and to act on informationInbound logisticsAssociated with receiving storing and distributing inputs to the productincludes material handling warehousing inventory control vehicle scheduling and returns to suppliersCan use JITjust in time systemsshould have a link with suppliers online and have suppliers load parts onto trucks in the order in which they will be installed in the same places on the trucks and have the trucks meet strict schedulesOperationsConcerns all activities associated with transforming inputs into the final product form including machining packaging assembly testing printing and facility operationsCan have environmentally friendly manufacturing off the products and disposal of chemicalscan recycle products etc Outbound LogisticsDeals with collecting storing and distributing They include finished goods warehousing material handling delivery vehicle operation order processing and schedulingCan use electronic network to facilitate replenishment as does Campbell soups with Loblaws In turn it will be able to replenish and forecast demand It will load a truck and send it out that same day arriving that same day as well The retailer
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