This model is divided into two activities, namely the primary activities, associated with the production and distribution of products / services, and support activities that contribute to the competitive advantage of a company by supporting the main activities. The main activities are subdivided into 5 activity, namely inbound logistics (inputs), operations (manufacturing and testing), outbound logistics (storage and distribution), marketing and sales and services. Stages in the main activities are as follows:
1. The raw materials that go then processed (at the reception, storage and so on), this activity is called inbound logistics.
2. The raw material is then converted into finished materials or products.
3. The products are then prepared for delivery (by the packaging, storage and accompaniment), this activity is called outbound logistics.
4. Marketing and sales, sells products to customers, increase the value of these products by creating demand for these products.
5. The company runs the after-sales services to customers, for example in the form of warranty, upgrades or other value added.
While supporting activities, consisting of organizational infrastructure (accounting, finance, management), human resources management, product development and technology (R & D) and procurement.
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