The primary value chain of Ocado consists of two different activities including demand generation and demand fulfillment activities. These activities are directed towards generating consisting demand for the firm's offerings. The inbound logistics that Ocado uses are the series of steps through which the needed raw materials are transported from different suppliers of the organization towards the major distribution warehouse of the organization (Ahargrave, 2011). Over here, Ocado uses different information systems where the major database of the firm is linked with different suppliers that in turn enable the organization to avoid chances of out-of stock or low stocks rather the system enable the firm to maintain efficient stock levels that are according to the demands in the market (Bond, 201). The operation of the organization consists of sorting out all the merchandize on proper places, and then transporting them according to the orders generated by the firm (Oakley, 2012). The outbound logistics of the firm is where the major competitive advantage of the firm lies as the organization follows an unique outbound logistics as it does not offers its goods as other firms do using the conventional store environment (Ahargrave, 2011). Customers book their order using the online web portal or the specialized software that the organization has prepared for online ordering available in iPad, iPhone, Android as well as Windows 7. The orders are then shipped to customers at the door steps using the organization vans that surf different areas in the target market. Ocado has a strong hold in London and the market is considered the major contributor to the firm's profitability (Andidas, 2009).