Question

The company I work for is Frito Lay. We produce potato chips at the location I am currently working at. Our value chain starts with the raw materials we need in order to complete a bag of potato chips. The company conducts a value chain analysis by identifying each part of the production process and will find where things can be streamlined to eliminate steps or where improvements can be made. You have to make sure each stage in the value chain is communicating properly in order for the product to be created and properly delivered to the end customer. Our value chain starts with the farmers who produce the potatoes to our specifications and quality, transportation, packaging, distribution, and destination locations. ( i need a reply to this discussion )

Answer 1

Solution:

Value Chain Analysis:

Value Chain is an important process flow of product management. It represents the efficiency of management for production flow. It begins with initial stage of production i.e. raw material purchase and ended with delivery to ultimate consumers (Gereffi, & Fernandez-Stark, 2016). The process flow should not be interrupted at any cost. The value chain process involves various stages of production and each stages of production added some value in the product. The efficient management policy helps to make the value chain process effective and efficient.

In the instant case the company Frito Lay involves in the production of potato chips. The company conducts a value chain analysis which is very important for each stage of production. The process flow i.e. value chain involves proper communication among each stage of the production. The value chain starts with farmers who produces the raw material i.e. potato and followed by transportation, packaging, distribution and destination locations. In the initial stage it should be confirm that the production of potato by the farmer is as per the require quantity and quality. Then the potato should be transport to the factory without through proper transportation. The inventory management should also consider at the time of storing the potatoes in the factory. After that the production process of chips are initiated and completed. After that the packaging is require for the chips to sale them in the market. After packaging the chips are distributed in the market through proper marketing chain and finally the same are reached to the destination i.e. to the consumers.

So the value chain analysis of the company involves proper analysis of the effectiveness of each stages of the value chain. This will help the management of the company to identify the inefficiency if any of the value chain process and will take remedial action or strategy by the management to improve the value chain analysis process. The overall production process and the profitability will increase of the company.

References:

Gereffi, G., & Fernandez-Stark, K. (2016). Global value chain analysis: a primer.

Savino, M. M., Manzini, R., & Mazza, A. (2015). Environmental and economic assessment of fresh fruit supply chain through value chain analysis. A case study in chestnuts industry. Production Planning & Control, 26(1), 1-18.