[Aprajita]

You have summarised it quite well!
Glad I could help.

Best to you too for your exam! 🙂

[Aprajita]

I’m also currently studying P3 and I can explain the way I understood it.

Raw materials are primary activity as without that you can not begin to deliver value as a business.
The procurement function is a support function as involves selecting your suppliers, negotiating deals with them and setting up contracts. It kind of sets you up to be able to have raw materials etc. for your production.

Visually I would look at it like – inbound logistics would be people in the factories/warehouses taking delivery of the materials to initiate production and the procurement function would probably sit in the head office or such, making calls, inviting tenders, etc.

You can not have raw materials without the procurement function (the support) however it is not the procurement function that leads to the delivery of product or service, the value delivery initiates with the raw material.

*I would really like to hear if someone else has another point of view or if I said something incorrect – this is just my understanding.

[Author]

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