Value Chain Analysis of Shoprite

Shoprite is a retail chain supermarket in South African company. The company has established a network of approximately 3543 retail chain stores across the country. Retail chain supermarket brand started its operations in 1979. Today, we’ll discuss the value chain analysis of Shoprite 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.

• Snacks and beverages; Coca-Cola
• Groceries: Unilever
• Edward Snell: Alcoholic drinks
• Fresh Department: crispy cookies
• Stephan & Seuns Boerdery; fruits and vegetables
• Outsurance Insurance; professional suppliers
• Hope Sonic Toys; General Merchandise and Furniture

The Value chain analysis of Shoprite 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 Shoprite value chain analysis company example as follows;

Value Chain Analysis of Shoprite

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

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

Inbound Logistics of Shoprite

I-Suppliers Network

Shoprite has established a very large suppliers network comprising of over 20000 suppliers and vendors ranging from micro to national level. The large suppliers network helps the company to offer a wide variety of products and goods to the customers. it decreases the company’s reliance on a few suppliers and makes it diversified.

II-Suppliers of the Year Award

In order to boost the morale and confidence of suppliers, Shoprite conducts and organizes Suppliers of the Year awards to recognize and appreciate the efforts of suppliers. Some of the top categories and finalists of the awards are as follows;

• Furniture and merchandise: Hope Sonic Toys
• Privates labels and partnerships: Cleopatra Tissue Products
• Faircap Group: Sustainability
• Jacobs Jamm Company: SMME
• AMKA Products: Personal Care Products  

III-Transparent Supply Chain

Shoprite is transparent about its entire supply chain network and processes. It focuses on reducing carbon waste, sustainable packaging, responsible sourcing, limiting climate risk, and fighting climate change. In order to regulate suppliers, Shoprite has set code of conduct for suppliers and it comprises of following;

• Human rights
• Fair wages
• Safe working conditions
• No corruption and bribery
• Competition laws
• Disaster management and continuity planning
• Confidential and proprietary information

Outbound Logistics of Shoprite

I-Transportation & Logistics

Shoprite partners up with various transportation and 3rdparty logistics service providers for the distribution and delivery of products and goods to the end consumers. They move products and goods from suppliers to manufacturers, distribution centers, retail stores, and end consumers.

Operations of Shoprite

I-Manufacturing Suppliers

Shoprite collaborates with various manufacturing suppliers. They receive the raw supplies and materials from the company’s authorized suppliers, manufacture the finished goods, and then deliver them to the retail chain stores of the company.

II-Warehouses & Distributions

Shoprite has a network of approximately 30 distribution centers and warehouses. They receive the finished goods from the manufacturers; temporarily store the products and goods, package and label them, maintain the cold chain to ensure the quality of the products, and then deliver it to the required retail chain stores of the desired quantity.

Marketing & Sales of Shoprite

I-Marketing & Advertisement

Shoprite runs various types of marketing and advertisement campaigns for the promotion of its retail products and supermarket brands. The company employs various media channels and strategic campaigns to approach the customer market and amplify its market share.

II-Retail Chain Stores

Shoprite has a network of approximately 3543 retail chain stores and supermarkets in various countries across the globe. They help the company to directly sell a vast variety of products and goods to the end consumers.

Services of Shoprite

Shoprite offers various services to the customers and the service portfolio helps the company to improve the overall customer satisfaction level and promote brand loyalty. Some of the main services are as follows;

• Financial services
• Cellular network services
• Digital e-commerce
• Ticketing
• Hospitality
• Pharmaceutical

Supporting Activities of Shoprite

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

Infrastructure of Shoprite

Shoprite has established a very large infrastructure of production and manufacturing facilities, distribution and warehouses, retail chain stores, and suppliers network. The large and worldwide infrastructure would help the company to smoothly perform its various retail chain supermarket operations, and timely make the products available on the shelves of the retail chain stores.

HRM of Shoprite

Shoprite has employed approximately 160000 employees to manage its global operations. The human resource management department of the company plays a key role in building a large database of employees, and suppliers, evaluating the performance of suppliers and employees, choosing the top-performing suppliers, and conducting training programs.

Technological Development of Shoprite

Shoprite invests a significant amount of capital resources in research and technological development. It helps the company to employ the latest automation technology, retail processing system, data analytics, and others. It would help the company to achieve efficiency in its operation and functional processes.

Procurement of Shoprite

Shoprite is highly careful and cautious about ethical sourcing and procurement of raw materials and finished goods from the manufacturers. The company has set up a strict code of conduct for suppliers and vendors, and it allows the company to ensure their compliance with human rights standards and regulatory requirements.

Conclusion: Shoprite 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 Shoprite; we have realized that Shoprite is the world’s leading retail chain South African brand. If you are learning about the Shoprite 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.