Value Chain Analysis of Macy’s

Macy’s is a retail chain departmental store American company. Rowland Hussey Macy founded the chain store company in 1858. Today, we’ll discuss the value chain analysis of Macy’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.

Sustainable Social Partners of Macy’s

• Trust for Public Land
• Name & The Jed Foundation 
• The Trevor Project
• Future of Fashion 
• Future of Style Fund
• Hispanic Federation 
• Reading is Fundamental
• APIA Scholars
• Girls Inc
• UNCF
• Big Brothers Big Sisters of America

The Value chain analysis of Macy’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 Macy’s value chain analysis company example as follows;

Value Chain Analysis of Macy’s

Let’s discuss the primary and supporting activities involved in the process of the value chain analysis of Macy’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 Macy’s

The primary activities are directly involved in the production of products and goods and adding value to the departmental chain store company. Some of the five main primary activities in the value chain analysis of Macy’s supply chain analysis are as follows;

Inbound Logistics of Macy’s

I-Large & Diverse Suppliers Network 

Macy’s has established a very large and diverse supplier network in various states across the US and worldwide. According to an estimate, the retail chain store brand invested approximately 937 million USD in the supplier’s diversity program by creating 5382 employment opportunities. The company creates opportunities for the following; 

• LGBT businesses 
• Veteran owned businesses 
• Women-owned businesses 
• Minority-owned businesses 

II-Sustainable Sourcing 

Macy’s is highly careful and cautious about sustainable sourcing and procurement of apparel, beauty, fashion, and other raw materials, suppliers, and components from verified sustainable partners. The company puts a great emphasis on top quality and sustainability. 

III-Suppliers Relationship 

Macy’s focuses on building a strong and long-term relationship with its suppliers and vendors. It allows the company to ensure the smooth supply of available raw suppliers and goods without any disruption; so that the company could keep performing its operations. 

Outbound Logistics of Macy’s

I-Logistics & Transportation Partners 

Macy’s collaborates and partners up with various 3rd party logistics service providers and transporters that have US-based warehouses. It allows the company to timely fulfill the orders and deliver the products and goods from manufacturing suppliers to the warehouses, retail chain stores, and the end consumers. However, some of the main 3rd party logistics partners are as follows; 

• OnTrac
• Lasership 
• Lone Star Overnight
• DHL
• USPS
• FedEx
• UPS

Operations of Macy’s

I-Productions & Manufacturing 

Macy’s has production and manufacturing partners in Asia, Europe, and America. The quality assurance department works closely with the production and manufacturing partners to ensure the final and finished product meets the quality standards. However, the company carefully analyzes its performance to ensure quality and controlled production. 

II-Tech Designing 

The color and designing team has set up more than 10000 standards for building colors at the fingertips of customers. The creative team employs the latest technology, knowledge, and expertise to develop the latest unique designs for customers. 

III-Distribution Centers 

Macy’s has approximately 35 distribution centers and warehouses across the US. They receive finished goods from the manufacturing partners, temporarily store, organize, and package them, and then send them to retail chain stores. The company has built its warehouses precisely in locations that are nearer to retail chain stores; it helps the brand to decrease transportation costs and improve delivery timing. 

Marketing & Sales of Macy’s

I-Marketing and Advertisement 

Macy’s is highly proactive on social and digital media platforms for running marketing and advertisement campaigns. It allows the chain store company to offer its product catalog to customers online and offline. However, the company runs various types of discounts and promotional campaigns to attract the attention of customers and improve their satisfaction level. 

II-Retail Chain Stores 

Macy’s has established a network of more than 510 chain departmental stores across the country. The company offers the latest collection of fashion products and goods at its stores and invites customers to come, try it out, and buy it if they find it attractive. 

Services of Macy’s

Macy’s offers a wide range of products and services to customers. The service portfolio helps the retail chain store brand to improve the overall customer satisfaction level; some of them are as follows; 

• Beauty services 
• Septic tank pumping 
• Sewer jet pumping
• Drain field restoration 
• Bulk potable water

Supporting Activities of Macy’s

Supporting activities are indirectly involved in the production of products and goods and adding value to the chain departmental store company. Some of the main supporting activities in the value chain analysis of Macy’s supply chain analysis are as follows;

Infrastructure of Macy’s

Macy’s has established a very large infrastructure of production and manufacturing facilities, warehouses, distribution centers, suppliers network, and retail chain stores. The worldwide infrastructure helps the company to smoothly perform its various operations and timely deliver the finished goods to the end consumers. 

HRM of Macy’s

Macy’s has employed over 130,000 employees and workers in various countries worldwide. The human resource management department of the company plays a key role in building an innovative working environment, safer working conditions, equal employment opportunities, sustainable operations, and complying with legal and human rights standards and regulations. 

Technological Development of Macy’s

Macy’s invests a significant amount of capital resources in research and technological development. It allows the company to develop unique and innovative designs, find new and sustainable methods of production, achieve efficiency, reduce cost, and save resources. In short, technology is the key and center of a company’s operations and functions. 

Procurement of Macy’s

Macy’s is highly careful and cautious about ethical sourcing and procurement of beauty raw materials and supplies. In order to ensure the ethical and sustainable practices of its suppliers, the chain brand has developed a strict code of conduct for suppliers to comply with human rights standards. 

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

After an in-depth study of the value chain analysis of Macy’s; we have realized that Macy’s is the world’s leading retail chain store company. If you are learning about the Macy’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.