Users need to understand their current location and navigate within a hierarchical navigation scheme.
Breadcrumbs display the current path to a particular page relative to the starting point. Breadcrumbs provide a means for users to understand their current context in a hierarchical structure and the ability to navigate up the structure easily.
Depending on the complexity of the navigational hierarchy and the type of page or application, it may make sense for the breadcrumb to represent only part of the hierarchy while sub tabs/trees/navigation represent the remaining hierarchy. In that case, you may want to make the far right element clickable.