Value Chain Analysis.

Value chain analysis is a most pertinent tool used to analyse internal company activities. This analysis represents all the internal activities of a company’s production of goods and services. The primary objective of this analysis is to perceive which activities are most significant to a company or industry and which ones need to make better in order to gain a competitive advantage. As such, by understanding and analyzing the internal activities of the company, the company will realize its competitive advantages and disadvantages as well. In the following discussion, we will analyze the company using the framework that consists of primary activities and support activities. The primary activities comprises of inbound logistics, outbound logistics, marketing and sales, operations and services. However, the support activities included procurement, technology development, human resource management as well as firm’s infrastructure.


Ø  Primary Activities

First and foremost, inbound logistic is a primary activities that is included in value chain analysis of PERODUA Company. PERODUA can gain competitive advantage in the aspects of inbound logistic since it has a good relationship with its suppliers. PERODUA offers the Electronic Supplier Information & Management System (E-Sims) to achieve suppliers. With the implemented of E-Sims, PERODUA can improve communication relationship with its supplier in a collaborative environment.  Regardless of the local or other country’s supplier, PERODUA and its supplier still can contact and response to each other in a more effective and efficiency manner through the supply chain innovation. However, the activities required to receive, store, and disseminate inputs are carried out smoothly by complying good facilities provided at the PERODUA plant. PERODUA also possesses efficient storage facilities to ease storage and recovery. Besides, PERODUA also deploy IT to ensure monitoring goes well and being transparency. Through transparency, IT can streamline processes, increase productivity, and improve customer service and support. On the employee side, PERODUA’s employees have the ability to supervise the smooth transit of merchandise. This can ensure the quality of its product and reduce the defective product be offer to customer. PERODUA also possesses efficient storage facilities to ease storage and recovery.

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Moreover, outbound logistics is another primary activity.  Outbound logistics mean all the activities that need to collect, store, and distribute of output. PSSB has 41 sales branches and 139 sales dealers across the country, to provide efficient and convenient service to its clients. Each PERODUA branch takes the responsibility of serving its respective area customer. Besides, PERODUA have a systematic process in managing all of the output. Dealing with the logistics included associated with moving completed vehicles from manufacturing plant to merchants (or sometimes, straightforwardly to clients) needs a broad transportation and intermittent storage system. As a result, PERODUA provided efficient transportation and well trained employees to deal with its output. Employees will ensure the shipping process go smooth and make adjustments promptly when need. Also, PERODUA possess a productive security framework, it can prevent the probability of any form of pilferage. This will reduce the possibility that PERODUA to be involved in the situation regarding the plight of loss. Overall, the industry has afforded equivalent attention in managing outbound logistics. Hence, Perodua can increase the efficiencies and lessen wastage in the general production network.


In the services aspects, PERODUA possess 46 service branches and 117 service outlets throughout Malaysia which provide customers with convenient services. That is, customers can easily buy a car from any sales branches that they feel convenience to go. Besides, Perodua always keeps their goods or services Working Effectively for their clients even after sale and delivery. Perodua make Body Repair & Paint Centres available to its customer across the country. The services provided by body repair and paint centres included 24 hours towing service, accident repair, insurance claim as well as body repair and paint. The insurance claim provided by Perodua consist of speedy claim approval for claim below RM5,000 and Hassle-Free Windscreen Claims. However, PERODUA will be giving their client a quality repair services with employed of skilled technician. This repair services is important and will benefit customer because it quality assurance for overall services. In addition, PERODUA also have service information and service package provided for the customer. That is, Perodua will also offer advice and suggestion to its customer regarding how to apply loan for purchasing a vehicle. Also, Perodua offers the opportunity to let customers state their problem or dissatisfaction through a tailored tool. That is, PERODUA provided ‘RESOLVES’ to its customer, it is an entirely independent issue-resolution tool that allow the raising and handling of client problem, which make complaining more straightforward for all individual. This tool is very easy to use and tailored to each type of problem. Sometimes, customer may feel dissatisfied with the initial response from PERODUA, however the escalation process can resolve this aspect of problem. Escalation process will inform the particular clients when their problem or complaint will be raise to the next level of seniority such as inspector or regulator.

Apart from this, another primary activity is marketing and sales. PERODUA Company had implemented different type of campaign and promotions activities. For example, PERODUA Company offer customer to purchasing GEAR UP PERODUA through a 0% interest of easy pay with selected bank during period 1-31 Jan 2018. PERODUA also focus on the aspect of advertisements. For instance, PERODUA Company promotes Perodua Myvi on television advertisements. PERODUA Company also offer panel of finance and insurance for its clients. That is, Perodua has 13 panels of finance, thereby customer has a lot of choices to choose which bank they want to established relationship with. PERODUA Company owns its showrooms across the nation. The overseas network and showrooms are available in the country like UK, Singapore, Brunei and Fiji Island.


Next, operation is also one of the primary activities of PERODUA.  The factory as of now has the capacity to produce 250,000 units for every annum on 2-shift cycle with Factory area of 64,000 square meters. PERODUA always ensure the production is going smooth and well. That is, it will use automation manufacturing process to promote quality as well as productivity. In addition to the difficult tasks robots do, there are transport vehicles that move themselves in the factory to increase the production process. The company is operated with professionalism hence it provided excellent quality and reliability to general public. Besides, PCSB take the responsibility to manage the manufacturing operations of the Perodua Group. Perodua Manufacturing Sdn Bhd is the company in charge of the manufacturing of Perodua vehicles. Perodua Engine Manufacturing Sdn Bhd assumes the assembly of the vehicle engines as well as manufacturing of chose engine component parts. In terms of staff, PERODUA Company provided sufficient training program to ensure the stable source of talented labor.


Ø  Supporting Activities

Firm’s Infrastructure is PERODUA Company’s support systems. It functions to enable PERODUA to maintain day-to-day operations. The headquarters houses of PERODUA combined all the departments in the building such as accounting, administrative, and general management department, R&D testing laboratories and styling studio, vehicle test track, manufacturing plant, engine plant, pre-delivery inspection area, vehicle distribution stockyard and parts warehouse. PERODUA’s factory approximately around 64,000 square metres. Also, PERODUA possess multi location facilities such as showrooms and service centres.


Perodua thinks that an efficient management of human resource can assist in achieving the company’s mission. Teamwork is a tittle that PERODUA focus on and encourage for all employees. This is because work in a team can bring a lot of advantages such as increase the task efficiency, more idea will be attained and exchange each other’s opinion. PERODUA always focus on motivating and developing their employees in order to produce more competent employee and elite. PERODUA will offer some training program to its staff which included Perodua Technical Education System (PTES). PTES is provided for junior technical entry level technical staffs to improve their basic automotive knowledge. Perodua Youth Training Programme (PYTP) is another special program. This training program is offer for school leavers (SPM) who are selected and prepared in-house until the point that they qualify to MLVK Level 1. Besides, PERODUA reward employees by continually reviewing and enhancing company effectiveness. This can be the motivation for employees to work hard for PERODUA. In addition, PERODUA offer a favorable workplace to its employees. This will increase the employees working efficiency. Besides, PERODUA will always ensure employees who has shown potential be given an open doors for career progress.


Moreover, procurement is another supporting activity. Perodua apply the Electronic Supplier Information and Management System to achieved e-business. It also used it to contact their supplier and negotiating good prices. The aim of e-SIMS is to initiate smart business partnerships as well as promote more local and global opportunities by using supply chain technology to contact and interact effectively and efficiently. With the implementation of e-SIMS, PERODUA can enhance communication between Perodua and its vendor in a collaborative environment. The process of e-SIMS allows PERODUA to increase their ability to planning and scheduling the procurement activities.  In terms of transactions, PERODUA will able to ensure accurate and quicker processing of transactions. 


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