Creating value is at the forefront of every successful business. This value can be in the form of satisfaction for their clients and in the form of profits for them and their shareholders. The greater the values, the better will be the sales process and the profits.
And to know how much value your company is creating; it is important to analyze its value chain.
The recent decade saw a boom in the length and complexity of value chains as companies continued to expand globally. According to a report by McKinsey & Company
since 2000, the value of intermediate goods traded globally has tripled to more than $10 trillion annually. Companies must focus on their external and internal processes to maximize the value at each point in the chain.
Businesses of all sizes can benefit from value chain analytics. By understanding the flow of money and goods through their company, businesses can identify areas where they can improve efficiency and increase profits.
Value chain analytics is not only a powerful tool for business owners, but it is also a valuable learning tool for employees. By understanding how the company works as a whole, employees can be more effective in their individual roles and contribute to the success of the business.
UniAspect Digital’s Value Chain Analytics Services
The ultimate goal of performing a Value Chain Analysis is to drive efficiencies and to create more cost-effective solutions for each segment leading to the after-sales efforts.
In addition, value chain analytics helps determine when and how to restructure the workflow or production flow in such a way that still leads to cost reduction or better workforce efficiency. We focus on two core competencies:
Digital Procurement & Spend Analytics
Digital procurement transformation can change how businesses get supplies while saving money and increasing efficiency. Digital tools can automate processes, improve communications, and generate deeper insights across procurement.
This transformation saves money, reduces errors, and increases efficiency. But many businesses can become overwhelmed with the new digital procurement tools.
Often, businesses try to do too much at once rather than build momentum. In this step, we apply our deep functional knowledge to provide insights as to what works and what doesn’t. Everything is tailored to your specific use case.
Strategic Digital Sourcing Advisory
Based on the requirements of the business, each sourcing event must appropriately balance timeliness, cost, and contractual flexibility. Drawing upon our strong Supply Chain Management (SCM) capabilities, we improve our clients’ purchasing outcomes by driving favorable vendor results in the areas of price, contractual terms, responsiveness, and flexibility.
Why Does My Company Need Value
Chain Analytics?
Value chain analytics can help businesses in many ways. It can help businesses:
How UniAspect Digital Conducts
Value Chain Analysis
When UniAspect Digital starts with the value chain analytics of your company, we first understand the basics of how your company works. We identify and categorize all the activities of your company into two categories that contribute to its margin: primary activities and secondary or support activities.
Although primary activities add direct value to the production process, they are not necessarily more important than support activities.
Support activities such as “information systems”, “R&D” or “general management” are usually the most important source of differentiation advantage.
On the other hand, primary activities are usually the source of cost advantage, where costs can be easily identified for each activity and properly managed.
Primary Activities are the activities that are directly involved in the manufacturing of products or execution of services. They include:
01
Inbound Logistics
02
Operations
03
Outbound Logistics
04
Marketing and Sales
05
After-sales services
Secondary or Support Activities are the subsidiary activities that make the implementation of primary activities more efficient. They include:
Procurement
Technology development
Human resource management
Infrastructure
Determining the Cost and
Value of Activities
Once we have categorized primary and support activities, we then proceed to determine the value that each activity brings to the process. We assess how your company benefits from each activity.
Our experts calculate the cost associated with each activity. We determine the effective way to lower and distribute the overhead costs.
Recognize Possibilities for Competitive Advantage
The value chain is a great way to understand the cost and value associated with each step of your business. By analyzing it through the lens of your competitive advantage, we help you make more informed decisions about where and how to invest your resources.
For example, if you’re looking to reduce costs, we check each step of the value chain to see where to reduce expenses. Which steps will increase efficiency? Are there any activities that don’t create value and could be outsourced or eliminated?
But, if differentiation is your goal, we focus on the steps of the chain that offer the best opportunity to achieve that goal. Would the value created justify ROI?
Links Between Activities
Our team of experts establishes the link between activities and how one activity affects the other in the chain.
For example, decrease defects and costs associated with quality control and dealer support activities using high-quality assembly processes. Plant locations that are close to a cluster of dealers or suppliers result in lower distribution and buying costs. Fewer model designs mean cheaper assembly.
This way we can turn your purchasing goals into favorable vendor results, simplify assembly and quality control processes, and optimize in-house resource use. In turn, it leads to greater economies of scale.
Value Chain Analysis for Better
Business Growth
All too often, businesses rely on analytics to justify decisions that have already been made. For instance, tracking product sales in a region they’ve expanded into. But companies need to identify concrete goals for the value chain analytics initiative.
UniAspect Digital has the expertise and experience to help you understand how your company works and identify areas where you can improve efficiency. We offer value chain services from A to Z.
We are helping businesses find new opportunities for growth, access to consumer markets around the world, and solidifying vendor and outsourcing relationships.
Check out what else we offer
Digital Growth & Expansion
We include this offering in our business model because we believe that the clients require validation when it comes to creating and executing strategies to drive the digital revolution
Digital Restructuring & Turnaround
If your business is facing organizational challenges, operating solely by old ways of thinking is a recipe for disaster.
Digital Business Operations
DBO caters to various CXO stakeholder’s transformational needs by taking responsibility of the entire scope of enterprise operations.