Time for Revitalisation of Value Chain Management: A Reassessment of Porter’s View on Procurement

Abstract

Purpose: In the light of recent disruptive events, global supply chains have displayed their vulnerability, which has stressed the importance of procurement in modern practice. This study aims to analyse if the procurement function can be reconsidered as aprimary activity in Porter’s (1985) value chain. Design/methodology/approach: The study utilises secondary data analysis. Data were collected on the basis of searches with nine keywords, which led to a discovery of 63 sources. Findings: The study has found that the procurement function cannot be regarded as a primary activity. However, it is identified that the unification of fragments of the two activities, inbound logistics and procurement, creates the foundation for a new activity, which mitigates exposure to volatility. Consequently, the findings urge to incorporate procurement logistics into the value chain as a re-modified primary activity.