Value Chain Analysis of Walgreens

Walgreens is a pharmacy chain store American company. Charles Rudolph Walgreens founded the pharmacy chain store company in 1901. Today, we’ll discuss the value chain analysis of Walgreens 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.

Health and Beauty Brands of Walgreens

• Botanics
• Sleep MakeUp
• Liz Earle
• Soap & Glory
• Your Good Skin
• Finest Nutrition
• Nice!
• No7

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

Value Chain Analysis of Walgreens

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

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

Inbound Logistics of Walgreens

I-Suppliers Network

Walgreens has established a very large suppliers network comprising of wide range of suppliers, vendors, and pharmaceutical companies in various countries across the globe. The large and worldwide network of suppliers would help the company to ensure the smooth availability of raw supplies, markets, and finished goods medicine to the customers.

II-Diversity Program

Walgreens focuses on collaborating with a diverse range of suppliers and vendors. It allows the chain drugstore brand to provide opportunities to deserving members of society. For instance, the brand procures over 1 billion USD worth of products from diverse suppliers; small businesses, women-owned businesses, LGBTQs, people with disabilities, veteran businesses, minority groups, and African Americans.

Outbound Logistics of Walgreens

Walgreens employs various transportation and 3rdparty logistics service providers for the transportation and distribution of products and goods. They help the company to move medicines and drugs from the pharmaceutical drug manufacturers to the warehouses and distribution centers, retail chain stores, and the consumers.

Operations of Walgreens

I-Warehouses & Distribution Centers

Walgreens has established a network of approximately 12 warehouses and distribution centers across the country. The company has built them in specific geographical regions near the retail chain pharmacy store; it helps the company to reduce the transportation cost and delivery time.

However, the warehouses receive drugs and medicines from the partnered manufacturing and pharmaceutical companies; temporarily store the medicines in the right temperature and environment, package and label the products, and keep an eye on the expiration date of medicine stock and inventory.

II-Retail Drugstore

Walgreens has established a network of approximately 9000 retail pharmacy stores across the US and worldwide. The drugstore brand needs to efficiently maintain the inventory and stock, and timely deliver the drugs and medicines to retail chain stores. They should return the expired medicines back to the warehouse and the production companies.

Marketing & Sales of Walgreens

Walgreens runs various types of marketing and advertisement campaigns for the promotion of its brand, drugs, and medicines. According to an estimate, the retail chain drugstore brand invested approximately 775 million USD on marketing and advertisement campaigns. The company employs various media channels; traditional and digital media platforms, and other promotional campaigns to approach the targeted customer market.

Services of Walgreens

Walgreens offers a wide range of services to customers along with tangible drugs and medicines. The service portfolio helps the company to improve the customer satisfaction level and promote brand loyalty. However, some of the main services of the firm are as follows;

• Healthcare service
• Customer support service
• Drugs and medicine
• Great in-store experience

Supporting Activities of Walgreens

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

Infrastructure of Walgreens

Walgreens has established a very large infrastructure of retail chain pharmacy stores, warehouses, distribution centers, suppliers and distributors network, and manufacturing partners network. The large and well-developed infrastructure helps the retail chain pharmacy store company to smoothly perform its various operations and timely deliver the drugs and medical at the pharmacy stores.

HRM of Walgreens

Walgreens has employed approximately 325000 employees to manage its global retail operations. The human resource management department of the company plays a key role in building a large recruiting a large network of employees, conducting training programs for employees, maintaining contracts with various suppliers and vendors, diversity programs, screening criteria, and offering equal employment opportunities to all regardless of any differences.

Technological Development of Walgreens

Walgreens invests a significant amount of capital resources in research and technological development. It allows the retail chain drugstore brand to employ the latest advanced systems, technological tools and equipment, efficient forecasting systems, automation processes, and robotic technology in the warehouses.

Procurement of Walgreens

Walgreens is highly careful and cautious about ethical sourcing and procurement of drugs and medicines from suppliers and vendors. The drugstore brand has set strict protocols to ensure the smooth availability of medicines at its stores without any delays and disruptions.

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