Value Chain Design of ITP

  • Post category:Post
  • Post comments:0 Comments

Value Chain Design of ITP

The student will submit an operations plan, based on the assigned business plan provided by the course instructor. The operations plan will include how operations will be measured, the structure of operations, the supply chain, the value chain, the quality control aspects, and technology used in the operation. Specific details for the assignment will be provided by the course instructor.”


Your Operations Plan should be based on the same company that you used for your Supply Chain and Value Chain assignments. It should be presented professionally and should include a Title page as well as a Reference page.

Administration and management Legal, finance and accounting management Scheduling and rescheduling of process and collaborative workflow
Human resource management Individual recruitment. Training and career development Workforce planning, employee benefit systems
Product and technology development Product and process design, research and development Computer aided design and product development
Procurement Supplier management, funding, sub-contracting E-commerce web-portal for suppliers
Inbound logistics

§  Quality controlling of the products

§  Raw material controlling

§  Supply process scheduling

§  Automated warehousing system


§  Manufacturing and packaging of the goods

§  Production control process

§  Quality control mechanism

§  Computer operated machines and systems

§  Computer-aided flexible manufacturing

Outbound logistics

§  Finishing the goods

§  Handling of orders received

§  Product dispatch

§  Invoicing the delivery

§  Shipment of the packaged goods

§  Online availability of products

§  Processing of final product

Marketing and Sales

§  Managing customers

§  Order tracking process

§  Promotional activities

§  Analysis of market and research

§  Online ordering system

§  Target ordering system

§  Targeted marketing

Customer service

§  Warranty of  the product

§  Awareness of the product

§  Training and education

§  Upgrading

§  Customer relationship management



Figure1: Value chain analysis of ITP

Analysis Value Chain of ITP

ITP’s product is FixIT that is trending in the market because of the functionality that this product offers. To make sure that the product hits the market in the best possible way and reaches out to the customers through all the platforms available, it is important to design the value chain in the most logical way possible. The above diagram gives an image of how this product is marketed. The inbound logistics involve in checking the quality of the product and scheduling the products to dispatch. Once the products are manufactured in the operations, the need of outbound logistics is felt, and the products are shipped with proper handling with invoicing the products (Bhargava, Bafna & Shabarisha, 2018). Next comes to the most important part, to guide the customers about the product and at the same time considering the increased level of competition in the market. In this case, the product must be available in both online and offline platforms so that it can reach out to the customers.

Last but not least, customer support and continuously working on the feedback is what needed in this competitive market and that needs to be checked too (Jaligot et al., 2016). It should be reminded that the entire process of manufacturing and delivering the goods depends on the activities of various departments in the company like the Administrative Department. They have to control the legal and the financial issue of operations. At the same time, scheduling and rescheduling of the product and operational activities would also be matter of concern for the management. All this process is the important part of the value chain of the company.


Supply chain management is important for an organization as it covers the effective market and holds the availability of the products and services of the company. In this study, ITP Company has been taken into consideration, which mainly deals with the manufacturing of the products. This particular company has been created in 1996 that mainly manufactures a product known as Fixit that helps in fixing the PVC pipes. The design of the supply chain has been described in the study along with highlighting the services and products that are provided to the customers by the company.

Supply chain design of ITP

Supply chain design is the procedure by which an organization manages the overall chains of supply and structures the overall performances as well as the structure of the firm. Both internal and external customers of ITP Company are attracted towards the design of the supply chain, which is mainly structured to achieve the lowest manufacturing cost. It helps customers to get the products at lowest prices from the company (Andrea, 2017). The following chart shows the supply chain design of ITP Company along with the overall structure of management.

The above figure points out the supply chain design of ITP Company, where the suppliers have been pointed at the top of the flow chart. The manufacturing facility is connected towards the storage facility where the products are stored for selling purpose. Besides, production planning and control of inventory are directly associated with the manufacturing facility that helps in identification of demand in the market (Beham, 2015). The storage facility is forwarded towards the transport vehicle by which the products would be transferred to the retailer. In addition to this, the retailer is responsible for selling the products that are Fixit to the customers. The process between the storage facility and retailer mainly falls under the category of distribution and logistics. Moreover, the transport vehicle might deliver the products to the distribution center and then to the retailer.

The flow of material is required to be coordinated along with the services and information, as it is required to figure out for the information that has been provided. ITP Company manages its raw material for manufacturing Fixit along with providing after-sales services the customers (Lehmacher, 2017). The company focuses on low expensive materials that make the product reasonable.

Maximizing the value of customers

The value of customers is required to be maximized as customers are mainly responsible for increasing the brand value of ITP Company. Customers would help in increasing the total amount of sales that would increase the overall revenue of the company. It also places the company in a higher position in the targeted market as the company focuses on the variation of the customers that are available in the market.

Sales and Order Processing

Sales processing in the company points out the overall process of sales that are required to be carried out at the times of selling the product. Customers put order to the company with a number of items that are required by them along with processing the order that has already been placed.

Transportation and Distribution

ITP Company transports its products from the factory to the warehouse with different modes of transportation. Modes of transportation include airways, roadways, and railways to the located warehouse (Govindan, 2015). The company transports the Fixit to the distributor with certain modes of transportation. On another hand, supply chain design points out the transportation towards the distribution center as well as towards the retailer.

Operations and Inventory

The activities of the company include the specific cost-effective operation that merges with a competitive advantage with the rival companies. Allocation of inventory along with operation is required to have the distribution network that mainly covers the specific region. The managerial expectation is required to be progressed with its allocated amount of working capital that generally satisfies the due diligence investigations (Fosso, 2018). The excess operation is associated with the PVC pipe industry where the shareholders are incorporated with excess production.



From the above study, it can be concluded that ITP Company has designed its supply chain process with the help of the available resources and other finances. Supply chain design has been mentioned which highlights the storage facility is forwarded towards the transport vehicle by which the products would be transferred to the retailer. It also points out the flow of material is required to be coordinated along with the services and information as it is necessary to be figured out for the information that has been provided. Moreover, the other services that are provided by the company to the customer’s include operations and inventory of ITP Company.

Leave a Reply