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Value Chain Model

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Avinash garg
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28 views5 pages

Value Chain Model

Uploaded by

Avinash garg
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Value Chain Model &

Porters Generic Model


Asst. Professor, Jessica M
Value Chain Model
• Value chain is a chain of activities which aims at creating and adding value to a
product or a service.
• Value is added at every process of doing business.
• Businesses aim at having attractive margins and thus they need to work on their
operating procedure carefully. Businesses work to change input into an output by
adding greater value in it.
• The more value a company creates, the more profitable it becomes.
• When more value is created, the same is passed on to the customers and thus
further helps in combining a competitive edge.
• One happy customer becomes a positive word of mouth for your company and he
gets ten more customers for your company. Value adds brand loyalty and brand
awareness in markets.
A. Primary Activities
• 1. Inbound Logistics: Amul maintains a good relationship with their Milk Producers. They come and pour the
milk at the dairy co-operative societies. Every milk producer of the village is a member of the Village Dairy
Cooperative Society. These members elect their representatives. . These representatives together manage District
Milk Unions.
Concept covered as per the model (placing order for raw material, receiving it, storing it, material handling,
warehousing and inventory control)
• 2 Operations: The district Milk unions take care of the milk and milk products.
Concept covered as per the model (machining, packing assembly, equipment maintenance, testing, printing
pasting, stacking and facility operations.)
• 3. Outbound Logistics: The milk is then transported and sold to the State Milk Federation.
Concept covered as per the model (Warehousing, material handling, routing, selection of routes, mode of
transport, order processing and scheduling)
• 4. Marketing and Sales: State Milk Federation then acts as the distributor that markets and sells the products in
the market to the retailers and consumers.
Concept covered as per the model (advertising, promotion, sales force size, training and developing, channel
selection, channel relation and pricing
5. After Sales: State Milk Federation offers the facility of replacing the milk and Dahi products if the retailers and
customers face any issues with packaging, material handling. They get replacement for those products.
Concept covered as per the model (product adjustment)
Support Activities
• 1. Procurement Amul procures the raw material from the Milk Producers
Concept covered as per the model (acquisition of resources)
• 2. Technological Development Amul uses the SAP software and other software’s and apps for smooth functioning of its
products to its customers. It also uses best of technological machines for its manufacturing.
Concept covered as per the model (equipment, hardware, software, procedures and technical knowledge)
• 3. Human Resource Management Amul follows all HR activities right from recruitment, selection, induction, training
& development, motivation, compensation, performance appraisal to its employees.
Concept covered as per the model (recruiting, hiring, salary, training, developing, compensating, motivation and
performance appraisal)
• 4. Infrastructure Amul’s plants at District Milk Unions and State Milk Federation talks about its state of art
infrastructure and innovative technology used for milk and milk products.
Concept covered as per the model (physical infrastructure, intellectual infrastructure, human infrastructure, digital
infrastructure)

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