Value Chain Analysis of Woolworths

Woolworths Group Limited is a retail chain and financial service-providing Australian multinational company. Ernest Williams, George Creed, Cecil Scott Waine, Stanley Chatterton, and Percy Christmas founded the retail chain company in 1924. Today, we’ll discuss the value chain analysis of Woolworths 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.

Business Divisions of Woolworths

• Finance and Loyalty
• Marketplace
• General Merchandise
• Supermarkets

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

Value Chain Analysis of Woolworths

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

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

Inbound Logistics of Woolworths

I-Suppliers Network

Woolworths has established a very large network of suppliers and vendors comprising approximately 18000 suppliers and vendors across the continent and worldwide. Out of which, 27% (5000) suppliers are small and medium-sized businesses and companies. The large and worldwide network of suppliers and vendors would help the retail chain store brand to ensure the smooth availability of raw supplies, materials, and goods.

• Pickled fish suppliers
• Potato farmers
• Egg farmer
• Master chocolatier
• Spinach farmer

II-Code of Conduct for Suppliers

Woolworths has set up a strict code of conduct for suppliers and vendors to ensure the quality of supplies and their compliance with ethical and sustainable practices. The supplier’s code of conduct of the brand deals with the following areas;

• Smooth supply of material and goods
• Healthy and safe ingredients
• Compliance with trade regulations
• Maintaining and complying with Quality assurance standard
• Sustainable sourcing and farming
• Compliance with ethical and human rights standards

Outbound Logistics of Woolworths

Woolworths employs various transportation and 3rdparty logistics service providers for the distribution of products, goods, supplies, and materials. They move raw ingredients, supplies, and materials from the company’s authorized suppliers and vendors to the manufacturing facilities, warehouses, and distribution centers, and then to the retail chain stores.

Operations of Woolworths

I-Productions Factories

Woolworths has approximately 8 production and manufacturing factories in African countries like Botswana, Eswatini, Mauritius, and Madagascar. They receive raw supplies, materials, ingredients, parts, and components from the company’s authorized suppliers and vendors; and perform various production and assembling operations to produce the finished goods.

II-Warehouses & Distribution Centers

The suppliers, manufacturers, and logistics service providers manage the warehousing of Woolworths products and goods on their behalf. In other words, the company outsources the warehousing operations to the suppliers and logistics service providers. They temporarily store the products and then deliver the required quantity to the retail chain stores of the brand.

Marketing & Sales of Woolworths

I-Marketing & Advertisement

Woolworths runs various types of marketing and advertisement campaigns for the marketing and promotion of its brand, products, and services. The retail chain store brand employs various media channels; traditional and digital media platforms to approach various segments of the customer’s market and increase their sales.

I-Retail Chain Stores

Woolworths has a network of approximately over 3000 retail chain stores across Australia and New Zealand. They help the company to approach the targeted customers market, and increase their market reach and accessibility to the end consumers.

Services of Woolworths

Along with tangible products, Woolworths offers a wide range of services to customers. The additional service portfolio helps the company to improve the customer satisfaction level and promote brand loyalty. Some of the main services of the retail chain store brand are as follows;

• Talk
• Gift cards
• Rewards
• Mobile
• Insurance
• Credit cards
• Stores
• Shopping

Supporting Activities of Woolworths

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

Infrastructure of Woolworths

Woolworths has established a very large infrastructure of production and manufacturing facilities, suppliers and distributors’ networks, and retail chain stores. The large and Well-developed infrastructure helps the retail chain store brand to smoothly perform its various retail operations and timely deliver the finished goods to the shelves of its stores.

HRM of Woolworths

Woolworths has employed approximately 215000 employees and workers to manage their global operations. The human resource management department of the retail chain store brand plays a key role in building and recruiting a large database of employees, efficiently forecasting the wide range of products and supplies, rightly allocating the workers to different roles, and offering equal employment opportunities to all regardless of any differences.

Technological Development of Woolworths

Woolworths invests a significant amount of capital resources in research and technological development. It allows the company to implement an advanced system, automation of various processes, efficient forecasting of various products and services, and robotic technology to reduce the wastage of time and resources.

Procurement of Woolworths

Woolworths is highly careful and cautious about ethical sourcing and procurement of raw materials and finished goods from suppliers and manufacturers. The retail chain brand has set up a strict code of conduct and terms and conditions for suppliers to ensure their compliance with human rights and environmental sustainability standards and requirements.

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