Value Chain Analysis of Next Plc

Next Plc is a retail chain footwear, clothing, and home products British multinational company. Joseph Hepworth founded the retail chain company in 1864. Today, we’ll discuss the value chain analysis of Next Plc 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 Next Plc

• K&D Design Kraft Lip
• CR Garment Export Lip
• Raagam Exports
• Bhuvaneswari Tex
• Shivalik Design 

Suppliers Countries of Next Plc

• Indonesia 
• Vietnam
• India
• China 
• Pakistan 
• Cambodia
• Myanmar
• Sri Lanka
• Bangladesh
• Turkey 
• Great Britain 

The Value chain analysis of Next Plc 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 Next Plc value chain analysis company example as follows;

Value Chain Analysis of Next Plc

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

The primary activities are directly involved in the production of products and goods and adding value to the retail chain clothing company. Some of the five main primary activities in the value chain analysis of Next Plc supply chain analysis are as follows;

Inbound Logistics of Next Plc

I-Suppliers Network 

Next Plc has established a very large network of over 107 suppliers and vendors in various countries worldwide. They provide garments, clothing accessories, hats, and other items. The large and diverse suppliers network helps the company to ensure the smooth availability of raw cotton supplies to the production and manufacturing supplies. 

II-Standards for Suppliers 

Next Plc has developed a strict ethical code of conduct and practices for suppliers to ensure their compliance with the ethical labor practices. The company audits and evaluates the performance of its suppliers based on pre-defined standards and codes. The suppliers’ code of conduct comprises of following elements; 

• Respecting the health and well-being of workers 
• Complying with human rights standards
• Safe working conditions 
• Protecting the workers’ rights

III-Supply Chain Transparency 

Next Plc is fully transparent about its supply chain network, the production and manufacturing factories, and ethical code of practices for suppliers. A visible and transparent supply chain network allows the company to audit its suppliers to ensure their compliance with the company’s standards. 

Outbound Logistics of Next Plc

I-Transport & Distribution Channels 

Next Plc partners and collaborates with various 3rdparty logistics service providers and the transporters of suppliers for the distribution of products and goods. The role of logistics and transportation channels is to move raw supplies from suppliers to the production and manufacturing factories, and then to the warehouses and retail chain stores of the company. 

Operations of Next Plc

I-Production & Manufacturing Factories 

Next Plc has a very large network of production and manufacturing factories in various countries across the world. Outsourcing production and manufacturing operations to verified suppliers’ factories helps the company decrease production costs and improve overall profitability. 

II-Warehouses & Distributions 

Next Plc has approximately 17 warehouses, distribution centers, and hubs in the UK and other various countries across the world. They temporarily store, organize, package, and label the products and then deliver the required stock items to the retail chain stores. However, the retail chain brand also employs third-party warehouses for online customer order fulfillment. 

Marketing & Sales of Next Plc

I-Marketing & Advertisement 

Next Plc runs various types of marketing and advertisement campaigns for the promotion of its products and brand to the target customers market. The company employs multiple media channels; TV, print media, digital media, social media platforms, in-store ads, billboards, and others to approach the end consumers and amplify the market reach of the company. 

II-Retail Chain Stores

Next Plc has established a very large network of over 500 retail chain stores in various countries worldwide. The worldwide network of retail chain stores allows the company to directly connect with end consumers; they could physically check out the product before buying it. 

Services of Next Plc

Next Plc offers a wide range of products and services to customers and businesses. The additional services help the retail chain clothing brand to improve the overall customer experience. However, some of the main services of the company are as follows; 

• Customer support service 
• Marketing 
• Warehousing 
• Online shopping & E-commerce platform 
• Distribution 

Supporting Activities of Next Plc

Supporting activities are indirectly involved in the production of products and goods and adding value to the retail chain clothing company. Some of the main supporting activities in the value chain analysis of Next Plc supply chain analysis are as follows;

Infrastructure of Next Plc

Next Plc has established a very large infrastructure of production and manufacturing factories, warehouses, distribution centers, and suppliers network. The large infrastructure helps the retail chain clothing brand to smoothly perform its various production and manufacturing operations and timely deliver the finished products to the end consumers. 

HRM of Next Plc

Next Plc has employed approximately 47000 employees to manage its global operations. The human resource management department of the company plays a key role in building a large and diverse database of employees, an innovative workplace culture, and ensuring the wellbeing of employees and workers. 

Technological Development of Next Plc

Next Plc invests a significant of capital resources on research for the development of the latest fashion designs; an e-commerce platform to improve the online shopping experience, and automation technology in the warehouses. It improves the overall operational efficiency, and optimum utilization of resources, and provides better user experience to end consumers. 

Procurement of Next Plc

Next Plc is highly careful and cautious about ethical sourcing and procurement of raw materials and production supplies from suppliers, vendors, and manufacturers. The company has set up a clear code of practices for suppliers to ensure compliance with human rights standards and workers’ interests. 

Conclusion: Next Plc Value Chain Analysis Example Company | Application of Value Chain Analysis Process 

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