Purchasing & supply involves all of those management processes and
operations needed to ensure that an organisation is able to obtain cost-
effectively from outside sources all of the products and services that it
requires. This is key to managing a firm’s integration into the supply chain.
Porter’s value chain within the enterprise
PRIMARY VALUE-ADDING ACTIVITIES
Inbound Outbound Marketing
Production Service
Logistics Logistics & Sales
Margin
IT systems
ACTIVITIES
SUPPORT
Human resources management & training
Research & development
Purchasing & contracting
Finance, planning, etc.
ITC M1:U1:1.1-1
, Suppliers In company Customers
Supply chain management
Physical flows
Information flows
Financial flows
Integrated
logistics
Physical flows
Information flows
Materials management & physical distribution
(incl. Purchasing)
ITC Physical flows M1:U1:1.1-2
operations needed to ensure that an organisation is able to obtain cost-
effectively from outside sources all of the products and services that it
requires. This is key to managing a firm’s integration into the supply chain.
Porter’s value chain within the enterprise
PRIMARY VALUE-ADDING ACTIVITIES
Inbound Outbound Marketing
Production Service
Logistics Logistics & Sales
Margin
IT systems
ACTIVITIES
SUPPORT
Human resources management & training
Research & development
Purchasing & contracting
Finance, planning, etc.
ITC M1:U1:1.1-1
, Suppliers In company Customers
Supply chain management
Physical flows
Information flows
Financial flows
Integrated
logistics
Physical flows
Information flows
Materials management & physical distribution
(incl. Purchasing)
ITC Physical flows M1:U1:1.1-2
