Inbound logistics
- After posting your initial response to the question, begin making comments to your peers. A minimum of two comments made on two different days must be posted in the discussion for a passing grade. The comments must be early enough before the end of the week to allow for replies.
Lori Hildebrandt (Student 1)
• After reading the course materials, including Mukerjee (2016) (a good overview of the factors for competitive advantage!), apply the most relevant two elements of a value chain analysis to an organization of your choice. Justify your choice of elements as to why they are important for that organization.
When an organization performs a sequence of activities for added value in gaining a competitive advantage, it is called a Value Chain Analysis (VCA). The components of a value chain are:
• Inbound logistics
• Operations
• Outbound logistics
• Marketing and sales
• Service
Inbound logistics: HyVee is an employee-owned grocery store, and the consumer population may not be privy to all aspects of the store’s strategies to gain a competitive edge. However, there is one area that is very visible to consumers regarding inbound logistics. During regular business hours, HyVee employees can be seen bringing boxes to the floor to unload, stocking shelves, and taking inventory. As frustrating as this can be while shoppers are trying to maneuver carts around the boxes, it sends a strategic message to customers those employees are right alongside them working while their shopping. Also, doing this during regular business hours creates a cost savings in terms of employee wages alone.
Service: HyVee prides itself on customer service. At any time during business hours, you can find an employee if you need assistance. HyVee staff are friendly, knowledgeable, and there to help with a smile. Their slogan “A Helpful Smile in Every Aisle” expresses the core foundation of the company’s philosophy. Additionally, HyVee will refund customers or replace an item a customer is not happy with instituting a no-questions-asked process. The grocery store offers several amenities for customers such as a pharmacy, Starbucks, UPS and USPS shipping, dry cleaning, western union and money orders, utility payments, fax services, Redbox rentals, Rug Doctor rentals, and many more.
• Describe one or two strategic tactics the organization might try (or already uses) based on the value chain analysis and justify why the tactic is useful as a competitive advantage tool.