Value Chain Analysis of Manufacturing Company

Manufacturing outlines the production and creation of products and goods by employing labor, tools, machinery, chemicals, and specific formulations. It is one of the key pillars of the country’s economy. Today, we’ll discuss the value chain analysis of Manufacturing Company 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.

Key Manufacturing Methods

• Agile Manufacturing
• Lean Manufacturing
• Flow Production
• Job Production
• Batch Production

Industrial Technology for Manufacturing Companies

• ZD
• TQM
• Six Sigma
• TOP
• QRM
• VDM
• TPM
• RCM
• PLM

The Value chain analysis of Manufacturing Company 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 the supply chain analysis of Manufacturing Company value chain analysis company example as follows;

Value Chain Analysis of Manufacturing Company

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

The primary activities are directly involved in the production of products and goods and adding value to the manufacturing company. Some of the five main primary activities in the value chain analysis of Manufacturing Company supply chain analysis are as follows;

Inbound Logistics of Manufacturing Company

I-Raw Material Sourcing

The raw material is the main and basic element for the operations of the Manufacturing Company. Production firms focus on sourcing cheap raw materials and supplies from various regions and countries across the globe. However, the objective is to find good quality and low-price materials for the production and manufacturing of products and goods.

II-Suppliers Relationship

Manufacturing Companies focus on building an effective and good relationship with suppliers and vendors across the world. It allows them to ensure the smooth supply of raw materials, supplies, and components necessary for production without any disruptions. However, many production and manufacturing firms prefer to collaborate with suppliers and vendors that engage in ethical and sustainable practices.

Outbound Logistics of Manufacturing Company

Manufacturing Companies employ various transportation and 3rdparty logistics service providers for the distribution of products and goods. They move raw supplies and materials from the suppliers to the production facility, moving supplies within the unit, and then delivering the finished goods to the warehouses and distribution centers. Without effective transportation and distribution, production firms can’t carry out their operations on time.

Operations of Manufacturing Company

I-Multiple Operations

The production and manufacturing operations of various types of businesses and companies are different. For instance, the manufacturing operations of clothing, confectionary, food, consumer electronics, home appliances, smartphones, and others; all are different industries and they engage in unique types of operations. Their design, formulation, production methods, raw material sourcing, and processing methods are different.

II-Warehouses & Inventory Management

Some manufacturing brands have their in-house warehouses and others deliver the finished goods to the client’s warehousing facilities. The warehouses temporarily store and manage the stock and inventory, package and label the finished goods, and then deliver the finished goods to the required destination of retail stores.

Marketing & Sales of Manufacturing Company

Manufacturing Companies run various types of marketing and advertisement for the promotion of their products and goods. They employ various channels and mediums to approach the other retail businesses and the end consumers. However, marketing campaigns allow them to approach the desired segments of the customer market and increase their sale.

Services of Manufacturing Company

Manufacturing Companies offer a wide range of services to businesses and customers. The additional services help them to promote brand loyalty and increase their sale. Some of the main services of the production and manufacturing firms are as follows;

• Customized products and goods
• Timely delivery
• Desired quality material
• Online shopping
• Delivery service

Supporting Activities of Manufacturing Company

Supporting activities are indirectly involved in the production of products and goods and adding value to the manufacturing company. Some of the main supporting activities in the value chain analysis of Manufacturing Company supply chain analysis are as follows;

Infrastructure of Manufacturing Company

Manufacturing Companies have established a very large infrastructure of machinery, tools, equipment, suppliers’ network, material access, sourcing network, and distribution channels. The large and developed infrastructure of the production firms would help them to smoothly perform their operations without any disruptions and delays.

HRM of Manufacturing Company

Manufacturing Company has employed millions of people performing different roles in various countries across the world. The human resource management department of the manufacturing firms plays a key role in recruiting the right employees for the required role, conducting training programs for employees, and offering equal employment opportunities to all regardless of any differences.

Technological Development of Manufacturing Company

Manufacturing Companies invest a significant amount of capital resources in research and technological development. It allows them to employ advanced tools and equipment for production, develop efficient methods of production, and find sustainable materials to reduce cost and achieve operational efficiency.

Procurement of Manufacturing Company

Manufacturing Companies are highly careful and cautious about ethical sourcing and procurement of raw materials and supplies. They have developed strict protocols for suppliers and vendors to engage in ethical and sustainable practices while providing material to the firm.

Conclusion: Manufacturing Company Value Chain Analysis Example Company | Application of Value Chain Analysis Process |Process of Value Chain Analysis

After an in-depth study of the value chain analysis of Manufacturing Company; we have realized that a Manufacturing Company plays a key role in the development of an economy. If you are learning about the Manufacturing Company 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.