Value Chain Analysis of Pick n Pay

Pick n Pay is a retail chain South African multinational company. The retail chain company started its business in 1967. Today, we’ll discuss the value chain analysis of Pick n Pay 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.

Partners and Suppliers of Pick n Pay

• Standard Bank Ucount Reward
• Absa Rewards
• Momentum Multiply
• Discovery

The Value chain analysis of Pick n Pay 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 Pick n Pay value chain analysis company example as follows;

Value Chain Analysis of Pick n Pay

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

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

Inbound Logistics of Pick n Pay

I-Large Suppliers Network

Pick n Pay has established a very large suppliers network comprising over 10,000 suppliers and service vendors in various countries across the world. The large and diverse supplier network ensures the smooth availability of supplies and raw materials for the production and manufacturing of finished goods product.

II-Suppliers Development Program

Pick n Pay has a suppliers development program and it focuses on promoting small businesses by giving the top shelves to their products to have more visibility. The growth and development of the small businesses would ensure the sustainability of the supplier’s network for the long-term relationship. However, the retail chain brand offers its suppliers mentorship and support to promote diversity and productivity.

III-Sustainable Supply Chain

Pick n Pay puts a great emphasis on environmental sustainability and healthy living; the company makes its entire supply chain sustainable with this objective. It allows the company to give easy access to sustainable, healthy, and safe products to the customers. The right information would make them make the right choices in terms of how they live and eat.

Outbound Logistics of Pick n Pay

I-Transportation & Distribution

Pick n Pay partners up with various transporters and 3rd party logistics service providers for the distribution of products and goods throughout the supply chain network. They move raw suppliers and materials to the production and manufacturing facilities, and then to the retail chain stores and the end consumers.

However, Pick n Pay is allocating a significant amount of capital resources to the development of the integrated logistics system. It allows the company to make its entire outbound logistics network transparent; and tracks the position of packages and material and their whereabouts.

Operations of Pick n Pay

I-Production & Manufacturing

Pick n Pay outsources almost all of its productions and manufacturing operations and processes to third-party manufacturing suppliers. They receive product orders, designs, and other requirements from the chain store brand; manufacture the products, and then deliver them to the company.

II-Warehouses & Distribution Centers

Pick n Pay has approximately 12 distribution centers and warehouses across South Africa. They play a key role in temporarily storing the products and goods, packaging, and labeling them, and then delivering them to the required destination. The company has built them in the specific regional geographies nearing the retail chain stores of the brand.

Marketing & Sales of Pick n Pay

I-Marketing & Advertisement

Pick n Pay runs various types of marketing and advertisement campaigns for the promotion of its products and brands. The retail chain brand is highly proactive on social media platforms and employs other channels to approach the end consumers and market its products there.

II-Retail Chain Stores

Pick n Pay has a network of more than 2200 retail chain stores of multiple categories. They range from supermarkets, hypermarkets, clothing, express, liquor, and other types of products. It allows customers an opportunity to physically visit the store; check out the products and then buy them.

Services of Pick n Pay

Pick n Pay offers a wide range of products and services to customers. The additional services help the company to improve the customer shopping experience and increase brand loyalty.

• Express
• High quality
• Drinks and beverages
• Clothing
• Utility bill payment service

Supporting Activities of Pick n Pay

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

The infrastructure of Pick n Pay

Pick n Pay has established a very large infrastructure of retail chain stores, supermarkets, departmental stores, warehouses, distribution centers, and suppliers network. The large and well-developed infrastructure helps the company to smoothly perform its various operations and timely deliver the finished goods to the retail chain stores.

HRM of Pick n Pay

Pick n Pay has employed approximately 90,000 employees. The human resource management department of the company plays a key role in building a diverse suppliers network, safe working conditions, carefully selecting and recruiting employees, and offering equal employment opportunities to all regardless of any differences.

Technological Development of Pick n Pay

Pick n Pay invests a significant amount of capital resources in technological development. The new software system, updated processes, automated technology, tools, and equipment help the company to achieve efficiency, save cost and capital resources, and reduce delivery time.

Procurement of Pick n Pay

Pick n Pay is highly careful and cautious about ethical sourcing and procurement of raw materials and finished goods from suppliers and manufacturers. The retail chain brand makes sure that its suppliers are complying with the sustainability regulations and standards.

Conclusion: Pick n Pay Value Chain Analysis Example Company | Application of Value Chain Analysis Process 

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