Value Chain Analysis of Mercedes Benz

Mercedes Benz is an automobile manufacturing German multinational company. Emil Georg Von Stauss and Carl Benz founded the automobile company in 1926. Today, we’ll discuss the value chain analysis of Mercedes Benz 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 Vendors of Mercedes Benz

• Motion Industries 
• Neocon USA
• MGM Machining 
• Metal Products
• Laser Fabrication & Machine Company 
• Kostal Mexicana SA
• Johnson Control
• Jasper Electronic Motors
• Inteva Products
• Hoerbiger Driver Tech
• Evonik Degussa Corporation 
• Davison Oil Company
• Borger USA Corporation 

The Value chain analysis of Mercedes Benz 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 Mercedes Benz value chain analysis company example as follows;

Value Chain Analysis of Mercedes Benz

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

The primary activities are directly involved in the production of products and goods and adding value to the premium automobile company. Some of the five main primary activities in the value chain analysis of Mercedes Benz supply chain analysis are as follows;

Inbound Logistics of Mercedes Benz

I-Large Suppliers Network 

Mercedes Benz has established a very large network of approximately 4000 direct suppliers in Asia, Europe, and North America. The large suppliers network helps the company to smoothly perform its various operations and ensure the smooth availability of supplies and components for the production and manufacturing of automobiles. 

II-Suppliers Screening & Criteria

Mercedes Benz carefully evaluates various suppliers before signing a contract with them. In fact, the automobile brand offers them sustainability training to improve their capabilities. The company has set up a clear code of conduct and regulations for them to improve their capabilities; transparent supply chain; and social and environmental regulatory compliance. 

III-Sustainable Supply Chain

Mercedes Benz is highly cautious about responsible and sustainable supply chain networks and processes. The automotive brand doesn’t directly procure any raw material from the suppliers; rather the company procures developed parts and components for the supplier’s companies. The responsible and sustainable supply chain program comprises of following elements; 

• Supporting suppliers 
• Responsible sourcing 
• Offering opportunities to the locals in the mining region
• Not exploitation of workers 

Outbound Logistics of Mercedes Benz

I-Transportation & Distribution 

Mercedes Benz employs various transportation modes for the distribution of its automobiles, parts, and components in various countries across the world. The distribution partners move parts and vehicles from the suppliers to the manufacturing factories; delivering the finished goods and vehicles from the manufacturing factories to the dealership stores and the end customers. 

Operations of Mercedes Benz

I-Production & Manufacturing Factories 

Mercedes Benz has a very large network of production and manufacturing factories in various countries; South Africa, China, Romania, France, USA, Germany, and worldwide. They receive automobile parts and components from authorized and registered suppliers and vendors; they assemble various parts and components, perform various tests, and then develop the finished vehicle. 

II-Parts & Distribution Centers 

Mercedes Benz has established a very large network of approximately 35 parts and distribution centers and locations points in various countries worldwide. They receive fully developed vehicles and automotive parts from various suppliers and production factories; temporarily store them, conduct thorough repair and maintenance, and then ship it to end consumers. 

Marketing & Sales of Mercedes Benz

I-Marketing and Advertisement 

Mercedes Benz runs various types of marketing and advertisement campaigns for the promotion of its parts, components, and finished vehicles. The automobile brands employ various media channels; traditional, digital media, social media, sponsorships, and others to approach the targeted customers; 

• Formula-1 racing association 
• Sponsoring leading sports tournaments 
• Collaborating with luxury fashion brands 

Services of Mercedes Benz

Mercedes Benz offers a great variety of services along with automobiles; the vast variety of services helps the company to improve the overall customer experience and brand loyalty. Some of the main services of the automobile brand are as follows; 

• Mile break-in service 
• Recall and warranty 
• Rotors replacement and brake pads
• Tire replacement and rotation services
• Wiper blade replacement 
• Air cabin filter replacement 

Supporting Activities of Mercedes Benz

Supporting activities are indirectly involved in the production of products and goods and adding value to the premium automobile company. Some of the main supporting activities in the value chain analysis of Mercedes Benz supply chain analysis are as follows;

Infrastructure of Mercedes Benz

Mercedes Benz has developed a very large infrastructure of production and manufacturing facilities; location points, distribution centers, dealership network, and suppliers network. The worldwide infrastructure would help the company to smoothly perform its various production and manufacturing operations; and timely deliver the finished automobiles to the end consumers. 

HRM of Mercedes Benz

Mercedes Benz has employed approximately 173,000 employees to manage its global operations. The human resource management department of the company plays a key role in building an innovative working environment; conducting training programs, inspecting the workspace, and offering equal opportunities to all regardless of any differences. 

Technological Development of Mercedes Benz

Mercedes Benz has earned a global reputation for introducing innovative technology in its automobiles. The company invests a significant amount of capital resources in research for the development of sustainability, efficiency, connectivity, safety, and improved performance. As a result, the company is developing hybrid, electric, and various types and categories of tech vehicles. 

Procurement of Mercedes Benz

Mercedes Benz is highly careful and cautious about the procurement of automobile parts and components from various suppliers worldwide. The automobile brand has developed strict regulations for suppliers to ensure their compliance with the social, environmental, and human regulatory requirements. 

Conclusion: Mercedes Benz Value Chain Analysis Example Company | Application of Value Chain Analysis Process 

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