What does the value chain include?

The value chain includes five basic activities and four auxiliary activities.

Contents of five basic activities:

1, procurement logistics. Provide various activities related to the receipt, storage and distribution of products or services. Such as people and goods, warehousing, inventory control, etc.

2. Production and operation. Activities that transform various inputs into final products or services. Such as machining, assembly, test packaging, etc.

3. Delivery logistics. The activities of product concentration, storage and final product distribution, such as product inventory, handling and delivery. If enterprises provide services, external logistics is more involved in guiding customer consumption.

4. marketing. Provide buyers with ways to buy products and guide buyers to buy various activities. Such as marketing management, advertising, sales channel selection, pricing and promotion.

5. service. Provide customers with various services that can preserve and increase the value of products. Such as installation, maintenance, use training, spare parts supply, product recovery after the end of life cycle, etc.

Contents of four auxiliary activities:

1, enterprise infrastructure. The infrastructure of an enterprise mainly refers to the conventional management system and management activities. Such as planning, finance, accounting, organization, legal services, information management system, office automation and other management behaviors.

2. procurement. Refers to the purchase of various inputs, including all activities related to suppliers.

3. Human resource management. Refers to the management of employees by enterprises, focusing on the recruitment, training, development and evaluation of employees, as well as the formulation of wages and benefits.

4. Technology development. Including technical know-how or parts, process equipment, production technology, product design and research, office automation, etc.