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Executive Summary
An organization can achieve its goals of creating value for its customers thru its products and services. In order to create this value it needs to understand its customer’s needs and focus on streamlining its activities to fulfill these needs. This report is an attempt to analyze the value chain system of one such successful organization Levi Strauss & Co., and how it has been able to integrate its various operations, marketing and technological processes to achieve high value and customer loyalty in the market for its products. It has been able to achieve this value creation by constant up gradation of its operations processes and continuous innovations of its products.
For this analyses I have chosen Michael Porters model of the value chain (see appendix A). We will be going thru some of the sections of this model to see how Levi Straus’s value chain creation processes fit into this model. ... Levis has been able to integrate its operations with its marketing strategies. ... New technologies help Levis decentralize production, increase customer satisfaction and eliminate waste.
A firm needs to look for competitive advantages beyond its own operations in the value chain of suppliers, distributors and customers. Like most companies, Levis has partnered with specific suppliers and distributors to create a superior value-delivery or supply chain network.
Logistics and Operations in terms of Warehouse Management Systems
Warehouse management systems play a key role in a manufacturing organization’s value chain system. ...
Levis has outsourced most of its core business processes as well as manufacturing and logistics. Information technology plays a vital role in all the processes within the value chain of Levis. ... Levis has adopted the Lean Logistics which refers to the superior ability to design and administer systems to control movement and geographical positioning of raw materials, work-in-progress, and finished inventories at the lowest cost. ...
Logistics helps in adding value to the supply chain process of Levis when inventory is strategically positioned to achieve sales. Levis has two main suppliers who provide its factories with the raw materials. Fibers used to manufacture raw denim are procured from Du Pont Fibers which in turn passes these on to Milliken Fabrik, Levis primary denim cloth supplier. From Milliken Fabrik the denim reaches Levis main factories to be processed and converted into finished goods.
Levis original conveyer system consisted of order picking and shipping sortation system with an in motion weighing system. This system needed to be upgraded because it was causing bottlenecks in the distribution lines because customer demands for special labels and other value added services had increased from 10% to 90% in the 90’s. ... Due to the sheer size of the factories and the number of orders generated for distribution, Levis had to implement an integrated system which would help automate and increase their picking speed and accuracy to provide superior customer service.
Approximate Word count = 2291
Approximate Pages = 9.2
(250 words per page double spaced)
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