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ACCA Strategic Professional · Strategic Business Leader · E-business: value chain

Norvale Outdoor, a camping equipment retailer, has introduced an online portal through which its suppliers see real-time stock levels and automatically trigger replenishment orders. In Porter's value chain, which primary or support activity is MOST directly improved by this change?

Inbound logistics is most directly improved, because it covers receiving, storing and controlling inputs from suppliers. Real-time stock visibility and automated replenishment orders streamline exactly that flow of goods into the business, rather than selling, service or people management.

  1. AInbound logisticsCorrect
  2. BMarketing and sales
  3. CService
  4. DHuman resource management

Explanation

Inbound logistics covers receiving, storing and distributing inputs such as stock from suppliers. Real-time stock visibility and automatic replenishment directly improve this activity. Marketing and sales concerns promotion and selling to customers, and the change does not primarily affect it.

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