This paper, the functional components of an organisation and their integration for supporting strategic goals and achieving continuous improvement will be discussed in context of value chain system as proposed by Porter (1985). The primary areas or components as per the generic value chain model are explained below.Inbound logistics is an integral part of the organisational activities, which is involved with the process of receiving, warehousing and disseminating raw materials for the purpose of production activities. In the value chain model, it is the most important activity as described by Porter (1987). Most organisations rarely pay importance to inventory management and control, which is necessary for optimisation of inbound logistics processes (Stock and Lambert, 2001).Receiving raw materials and managing the warehousing activities are complex processes and in large organisations, the same involve massive investment. Moreover, these are the primary aspects of inbound logistics. In most small organisations, the warehousing facilities are maintained in the production area; whereas in large organisations, separate facilities are created for receiving and storing raw materials and quality check and quality assurance activities are performed for total quality management.In inbound logistics, material receiving and storage is considered significant as resource dissemination is greatly dependent on the same. Proper raw material distribution ensures smooth flow of other activities. Material distribution is conducted as and when requested so as to avoid unnecessary distribution and wastage of excess resources. On the other hand, improper distribution results in production delay and increased cost of production. So, efficiency in raw material (inventory) management is extremely important (Cooper, Lambert and Pagh, 1997).An operation in the value chain process is defined as the process of converting raw materials (inputs) to output (products and services) with the help of machinery and expertise. Operations management is one of the core functions of an enterprise and is responsible for resource planning, coordination and controlling in order to improve product delivery and services. Operations management is primarily responsible for development of the utilities from raw materials. Then again, responsibilities of operation management are not limited to a single function. Operations management is responsible for meeting the consumer demands while
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