Value Chain Analysis of Volkswagen

Volkswagen is an automobile manufacturing German multinational company. The brand started its automotive business in 1937. Today, we’ll discuss the value chain analysis of Volkswagen 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 Volkswagen

• Schnellecke Logistics
• Faurecia
• DRX
• Grupo Antolin
• Kasai
• TNM
• ThyussenKrupp
• NXP Semiconductors
• Gestamp
• HARTING Automotive Gmbh
• Friedrich Boysen Gmbh
• Mueba Carbo Tech Gmbh

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

Value Chain Analysis of Volkswagen

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

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

Inbound Logistics of Volkswagen

I-Suppliers Network

Volkswagen has established a very large suppliers network comprising over 59000 suppliers and vendors in 90 countries across the world. The large and worldwide suppliers network helps the automobile brand to ensure the smooth availability of raw supplies, parts, and components without any disruptions and delays.

II-Standards for Suppliers

Volkswagen has set up a strict code of conduct for automobile suppliers to vendors to ensure their compliance with the industry regulations and human rights. The supplier’s code of conduct of the automobile brand deals with the following areas;

• Tolerating various belief systems
• No discrimination in the workplace
• Safety of individual workers and no illegal activities
• No forced and child labor
• Safety working conditions

III-Suppliers Award

In order to boost the morale and motivation level of suppliers and vendors, Volkswagen organizes suppliers’ awards to recognize their innovation, speed, achievements, and performance. The top winning suppliers and vendors of Volkswagen are as follows;

• STIWA Advanced Products Gmbh
• SIEM Car Carrier AS
• Shanghai Automobile Air Conditioning Accessory
• Nemak SA
• Mueba Carbo Tech Gmbh
• Jiangsu Pacific Precision Forging
• Harting Automotive Gmbh
• Friedrick Boysen Gmbh

Outbound Logistics of Volkswagen

Volkswagen employs various in-house logistics and 3rdparty logistics service providers for the transportation and distribution of automobile parts, equipment, and supplies. Konzernlogistik and Markenlogistik are the main logistics partners.

However, they move automotive parts and supplies from the suppliers and vendors to the production and manufacturing facilities, warehouses and distribution centers, dealership stores, and the end consumers. They have established a very large and worldwide suppliers and logistics network.

Operations of Volkswagen

I-Production & Manufacturing Factories

Volkswagen has approximately 119 automobile production and manufacturing factories. They receive automotive supplies, parts, and components from authorized suppliers and vendors; perform various automobile production and manufacturing operations, and produce various types, designs, and categories of vehicle models for various types of customers.

II-Warehouses & Distribution Centers

Volkswagen has various warehouses and distribution centers in various regions and countries across the globe. They receive automotive parts and equipment and finished vehicles from the production and manufacturing factories and the authorized suppliers; temporarily store them and then deliver it to various automobile dealership stores.

Marketing & Sales of Volkswagen

Volkswagen runs various types of marketing and advertisement campaigns for the promotion of its brand and automobiles. The brand employs various media channels; traditional and digital media platforms, sponsorship of events, and other marketing campaigns to approach various segments of the customer market.

Services of Volkswagen

Volkswagen offers a wide range of services to the customers and automotive users. The additional automobile services help the company to promote brand loyalty and increase its sales; some of them are as follows;

• Repair and maintenance
• Inspection of automobiles
• Replacement of air filters
• Changing spark plugs and other parts

Supporting Activities of Volkswagen

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

Infrastructure of Volkswagen

Volkswagen has established a very large infrastructure of production and manufacturing facilities, suppliers and distributors’ network, and dealership stores network. The large and worldwide infrastructure would help the automobile brand to smoothly perform its various operations and timely the automobile models for the customer’s market.

HRM of Volkswagen

Volkswagen has employed approximately 676000 employees and workers to manage its global operations. The human resource management department of the company plays a key role in building a large database of employees, carefully recruiting and screening employees for multiple roles, conducting training programs, and offering equal employment opportunities to all regardless of any differences.

Technological Development of Volkswagen

Volkswagen invests a significant amount of capital resources in research and technological development. The R&D helps the automobile brand to develop efficient technology for the automobile, unique designs for the upcoming models, innovative production and manufacturing methods, and sourcing new materials for the automobiles.

Procurement of Volkswagen

Volkswagen is highly careful and cautious about ethical sourcing and procurement of materials, supplies, parts, and components. The automobile brand has set a strict code of conduct for suppliers to ensure their compliance with human rights standards and automobile industry regulations.

Conclusion: Volkswagen 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 Volkswagen; we have realized that Volkswagen is the world’s leading automobile brand. If you are learning about the Volkswagen 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.