Value Chain Analysis of Kellogg’s

Kellogg’s is a cereal and food manufacturing American multinational company. Will Keith Kellogg founded the food company in 1906. Today, we’ll discuss the value chain analysis of Kellogg’s supply chain analysis; primary and supporting activities in the process of value chain analysis Example Company. They are inbound and outbound logistics, operations, marketing, and customer service; infrastructure, HRM, technology, and procurement as an application of the value chain analysis process.

Suppliers and Sourcing Partners of Kellogg’s

• DACSA (Spain, Valencia, UK, and Liverpool)
• Cargill
• ACA
• Farmers 
• Cooperative Societies
• Zinc Argo

The Value chain analysis of Kellogg’s supply chain analysis would analyze the primary and supporting activities in the process of value chain analysis. They’re inbound and outbound logistics, operations, marketing, and services; infrastructure, HRM, technology, and procurement. Here’s supply chain analysis of Kellogg’s value chain analysis company example as follows;

Value Chain Analysis of Kellogg’s

Let’s discuss the primary and supporting activities involved in the process of the value chain analysis of Kellogg’s supply chain analysis. It is an application of value chain analysis based on Porter’s model; some of the key elements and components of value chain analysis are as follows;

Primary Activities of Kellogg’s

The primary activities have a direct relation to the production of products and goods and adding value to the company. Some of the five main primary activities in the value chain analysis of Kellogg’s supply chain analysis are as follows;

Inbound Logistics of Kellogg’s

I-Large Suppliers Network 

Kellogg’s has established a very large network comprising over 20000 suppliers and vendors across the world. They provide food raw materials, wheat, rice, corn, cereal, packaging material, and other production and manufacturing supplies to the company. The food and snacks manufacturing brand focuses on building a better and long-term relationship with suppliers and vendors worldwide. However, it helps the company to ensure the availability of raw supplies and materials for production without any disruptions. 

II-Sustainable Supply Chain

Kellogg’s has a strong commitment to the ESG (Environment, society, and Governance). The company carefully finds and selects suppliers and vendors that are committed to social and environmental responsibility. However, the objective is to decrease the carbon emission rate throughout the company’s supply chain network. 

Outbound Logistics of Kellogg’s

I-Transportation and Distribution 

Kellogg’s partners up and collaborates with specialized transportation and logistics service providers like TDG and others. They help the company in transporting and distributing the finished goods from the suppliers, and manufacturing facilities to the warehouse and the retail stores. The outbound logistics partners of the food and snacks company have specialized expertise in transportation and distribution. They make sure the timely availability of the company’s food supplies to the end consumers. 

Operations of Kellogg’s

I-Manufacturing Facilities 

Kellogg’s has established a very large network comprising more than 37 food snack production and manufacturing facilities in various countries across the world. They help the company to offer 1800 products in over 180 countries worldwide. In fact, the company provides food snacks under different brand names in various countries. 

II-Distribution Centers & Warehouses 

Kellogg’s has recently shut down 30 out of 39 warehouses and distribution centers. The company also employs the distribution centers of the company’s partners like TDG. However, they temporarily store the finished products, organize them, and then ship them to the required destination of retail stores and supermarkets based on their needs and requirements. 

Marketing & Sales of Kellogg’s

I-Marketing & Advertisement 

Kellogg’s has launched various successful marketing and advertisement campaigns over the years. They helped the company to become the world’s leading food and snack brand. The brand employs various media channels, sponsorship of kid’s series, US gymnastics, and other events for the promotion of its special cereal pack, snacks, and brand. 

Services of Kellogg’s

Kellogg’s serves its customers with healthy food, cereal, and snacks and the company has been doing it for the past over 115 years. Some of the main popular snacks of the company are as follows; 

• Toaster pastries
• Crackers
• Cheez-it
• Eggo
• Pringles
• Rice Krispies treat
• Corn flakes 

Supporting Activities of Kellogg’s

Supporting activities have an indirect relation in the production of products and goods and adding value to the company. Some of the main supporting activities in the value chain analysis of Kellogg’s supply chain analysis are as follows;

Infrastructure of Kellogg’s

Kellogg’s has established a very infrastructure of production and manufacturing facilities, distribution centers and warehouses, suppliers, and transportation network. Well-developed infrastructure helps the food and snacks manufacturing brand to smoothly perform its various operations and timely deliver the finished goods to the end consumers. 

HRM of Kellogg’s

Kellogg’s has employed roundabout 23000 employees and workers to manage its global operations. The human resource management department plays a key role in building a healthy working environment; training suppliers; complying with sustainable objectives and values; and offering equal opportunities to all regardless of any differences. 

Technological Development of Kellogg’s

Kellogg’s invests a significant amount of capital resources in the technological development of its productions and manufacturing facilities. They’re in the form of automated production processes, efficient processes, and unique methods. Ultimately, it helps the company to reduce the wastage of resources and achieve efficient production and manufacturing processes. 

Procurement of Kellogg’s

Kellogg’s is highly careful about the ethical and sustainable sourcing and procurement of food raw materials, ingredients, and other production materials. The company carefully selects those suppliers that would comply with the company’s environmental, social, and human rights standards and regulations. 

Conclusion: Kellogg’s Value Chain Analysis Example Company | Application of Value Chain Analysis Process 

After an in-depth study of the value chain analysis of Kellogg’s; we have realized that Kellogg’s is the world’s leading retail food and snacks offering brand. If you are learning about Kellogg’s value chain analysis example company; then you should keep in mind the abovementioned primary and supporting activities. They’re inbound and outbound logistics; operations, marketing and sales, and services; infrastructure, procurement, HRM, and technological development as an application of the value chain analysis process.