How Technology Extended Tesco's Value ChainIntroThe idea of ​​the value chain was first conceived by Michael Porter. The idea behind it is to have a value chain in a company to create a sustainable competitive advantage in the market in which it operates. All businesses involve several activities that bring them together to create the value chain. The value chain of any organization will always start with the production of raw materials and end with the finished product in the possession of customers. The principle of value chain structure is to maximize value while reducing costs. Two parts are ultimately connected in value chain analysis. The first part of the value chain connects the value of business activities with its functional parts. The contribution of both parties to the total added value of the company is evaluated. To perform a value chain analysis, business activities are divided into primary and support activities. The primary activities are linked to production, where on the other hand support activities such as human resources constitute the essential basis for the effectiveness and efficiency of the company. View from the supplier Tesco's development of the value chain through the adaptation of readily available technologies has resulted in great success, effectiveness and efficiency. From the (upstream) supplier perspective, Tesco's inbound logistics has evolved to the use of EdI and barcodes. An EDI (electronic data interchange) contains business data that generally represents price, quality, dates, etc. By involving this technology in Tesco's inbound logistics, suppliers can efficiently know which products, how many and where they need to be shipped, in real time 'Tesco believes that an open and...... half-paper business. .....so that the company is transparent and coherent regarding its motivations and values. “If you do, they'll stay with you for life, and that's where you'll get the return on your investment,”ConclusionReferencesWeSupply. (2013). Tesco EDI initiative. Available: http://www.wesupply.com/tesco-edi-initiative/. Last accessed March 31, 2014.Jon Sinigaglia. (2007). EDI (electronic data interchange). Available: http://searchdatacenter.techtarget.com/definition/EDI. Last accessed: March 27, 2014. Anthony Reuben. (2012). Tesco stores renovated to attract gadget enthusiasts. Available: http://www.bbc.com/news/business-19810924. Last accessed: 27 March 2014. Ian Grant. (2011). Tesco uses customer data to outperform the competition. Available: http://www.computerweekly.com/news/1280095684/Tesco-uses-customer-data-to-stride-ahead-of-competition. Last access March 27 2014.