Shape NZ: Supply Chain Optimization via Porter's Value Chain Model

This report critically analyzes the supply chain management of Shape NZ Limited, building upon a previous assessment to propose operational, strategic, and tactical decisions. It explains the company's supply chain using Porter's value chain, analyzing primary activities (inbound logistics, operations, outbound logistics, marketing & sales, service) and support activities (procurement, human resource management, technological development, infrastructure). The report evaluates stakeholders in relation to Porter's model, examining their roles and impact on value creation within Shape NZ, including a power interest grid and stakeholder analysis matrix. It further discusses the importance of internal and external stakeholders, value exchange diagrams, and the future of sustainable supply chain management for achieving competitive advantage. Desklib provides access to this and other solved assignments.

Supply chain management

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Contents
Introduction......................................................................................................................................3
The potential impact of the suggestions on improving the value of customers...............................4
Communication with the help of Data management and integration..........................................4
Use of Social media.....................................................................................................................4
Meeting the requirements............................................................................................................5
Porter’s value chain.........................................................................................................................6
Primary activities.........................................................................................................................7
Inbound logistics......................................................................................................................7
Operations................................................................................................................................8
Outbound logistics...................................................................................................................8
Marketing and sales.................................................................................................................8
Service.....................................................................................................................................9
Support activities.........................................................................................................................9
Procurement.............................................................................................................................9
Human resource management..................................................................................................9
Technological development...................................................................................................10
Infrastructure..........................................................................................................................10
Evaluation of stakeholders in regards to a model of Porter's value chain.....................................10
Power interest grid.....................................................................................................................12

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Role of stakeholders and their impact on value created by Shape NZ..........................................12
Procurement...............................................................................................................................13
Manufacturing............................................................................................................................13
Distribution................................................................................................................................14
Shareholder Analysis Matrix.....................................................................................................14
Important and impact of the internal and external stakeholders within Shape NZ.......................17
Importance and impact of the internal stakeholders..................................................................17
Importance and impact of the external stakeholders.................................................................18
Diagram for the value exchange between the key stakeholders and organization........................19
Supplier......................................................................................................................................20
Manufacturing............................................................................................................................20
Distribution................................................................................................................................21
Future of Sustainable supply chain management to achieve competitive advantage....................21
Conclusion.....................................................................................................................................24
References......................................................................................................................................25

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Introduction
The aim of the report is to critically analyze the supply chain management of the Shape NZ
Limited. This report is the continuation of the assessment 1 which discusses about the major
issues faced by the company. The report reflects the critical analysis of supply chain tools and
techniques in order to propose the operation, strategic and the tactical decisions of the Shape NZ
Company. Along with this, it includes the explanation of the company supply chain with the help
of Porter’s value chain. This method has been used because this helps in analyzing the activities
that are performed within the organization. The report includes the analyses and evaluation
related to the stakeholders of the Shape NZ in regards to the basic model of the porter’s value
chain. This porter’s value chain contributes to analyze the role of every stakeholder available
within the organization informing the value for the Shape New Zealand organization. These
aspects are discussed along with the porter’s value chain diagram and the matrix table which
reflects the influence and interest of stakeholders within the company.

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The potential impact of the suggestions on improving the value of
customers
In the previous assignment, there was the discussion related to the supply chain issues that are
mainly faced by the Shape New Zealand Company. Along with the appropriate suggestion are
also discussed that can reduce or eliminate the issues that are mainly faced by the company in the
New Zealand market. Though, the suggestions can lead to the positive impact of improving the
value of customers. This section includes the impact of suggestions for the supply chain that
contributes to improve the values of the customers of the company.
Communication with the help of Data management and integration
It was suggested to the Shape New Zealand to better manage to make use of the data
management and integration. The collection of the facts and data will help the company to
understand the prices of the products, labor cost, rental contracts, taxation cost of the products
and services. This data will support the company as they will be able to offer the products at
affordable prices. This will lead to the customer satisfaction and loyalty. This shows the use of
the coloration tool in which communication can be done. The collaboration with the suppliers
and customers leads to feedback easily which will help the company to bring the improvement in
their products (Ptak & Schragenheim, 2016). This is the way through which they can offer the
high quality and customized products considering the feedback.
Use of Social media
The social media platforms are good at sharing the details about the product that is manufactured
by the enterprise. This is the effective way through which the company can get the reviews,

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views and the feedback from the employees for the product. The use of social media will support
the Shape New Zealand to bring the improvement in the supply chain which will help the
company to enhance value. The reviews for the product will bring the change in suppliers and
ensure that the company is able to provide the quality products at affordable prices. Moreover,
the positive feedback for the product brings the good reputation for the company and makes the
other customers to use the products.
(Source: Dogulin Digital, 2018)
Meeting the requirements
Effective customer relationship is one of the ways through which the company can achieve the
success and can easily expand the business in the other markets. The effective relationship with
the customers is possible when the company is able to provide the demanded goods and services
on time. The company is willing to increase the number of suppliers because through this they
can bring diversification in products that they are offering to customers. Moreover, this is
essential for the manufacturing companies to diversify the suppliers and the products that they

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are offering to the customers because different people have diverse needs for the product. This
shows that the company makes use of demand forecasting tool through which they can evaluate
and meet the needs (Monczka et al 2015).
All these points reflect that the company can bring the improvement in the supply chain. Along
with this, the improvement in the supply chain management can bring the improvement in the
value that the company offers to its customers.
Porter’s value chain
The porter’s value chain framework is the model that supports the company to evaluate the
specific activities through which the company can form the value and the competitive advantage.
There are two types of activities that are included in the value chain model of the porter’s. These
activities are primary activities and the support activities. The primary activities include inbound
logistics, Marketing, and sales, outbound logistics, operations and service (Kotler, 2015). Along
with this, the support activities include infrastructure, human resource management, technology
development and the procurement. The analysis of these activities reflects the role of the supply
chain management for the Shape New Zealand. The analysis of Porter's five forces on the
company is given below.

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(Source: Mind Tools, 2018).
Primary activities
The primary activities of the value chain are related directly with the physical creation, sale, and
maintenance (Chernev, 2018). The below given is the analysis of the primary activities of the
Shape NZ company.
Inbound logistics
The inbound logistics include the processes that are associated with the receiving, storing, and
distributing the products. The company is specialized in light engineering, sheet metal
fabrication. Shape NZ performs the activity of designing and manufacturing fabricates which is
primary inbound logistics activity. The supply chain of the company initiates with the sourcing
of the products from the suppliers as it is required for the production. These raw materials are
stored by the shape NZ Company in the warehouse. Later, on the company continue with the
activity of the producing the products and finally distributing it to the final customers.

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Operations
This is the important activity of the porter’s value chain in which the transformation activities
takes place. In simple, this is the major activity which changes the inputs into the outputs of the
product (Mind Tools, 2018). Shape NZ design the products that they are willing to prepare for
their customers. Though, the company provides the services to the leading infrastructure and
engineering companies in the New Zealand market. The production of the products is possible
when there is effective sourcing of the raw material from different suppliers.
Outbound logistics
This is the external process in which the products and services are delivered to the end-users who
make use of the product. The storing and distribution of the finished goods is considered as the
outbound activities (Mullins, et al 2010). The Shape NZ is the business that offers the services to
major companies due to which the company forms the deals with the numerous suppliers who
can help them in distributing the products within the market. The outbound logistics of the
company include all the activities that are included in the supply chain.
Marketing and sales
The marketing and sales of the product are one of the essential elements that are performed by
the company as this is the way through which they can generate the high awareness in the market
for the products and services (Mind Tools, 2018). Shape NZ performs the marketing activities
with the help of the advertisement in online media. The advertisement through online stores is
one of the effective ways through which the company can target the maximum people because
most of the people are making use online portals for fetching details. In the local market, the
company has one team who perform the personal selling in which they carry one template and
visit the nearby shop and businessmen who can make use of the company’s product and services.

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Service
This activity reflects that the company can maintain the value of the products and services that
are maintained in the eyes of the customer (Sokhatska & Lahotska, 2013). The company ensures
that there are providing the quality in their products and at the affordable price. Along with this,
the company wants that they make their products easily available to the customers that are
present in the New Zealand local market. Shape NZ offers the after sales service which helps the
company in generating the high-level reputation in the market. All these aspects are possible
when the company is able to
Support activities
The support activities are the activities that provide the support to the primary function and
activities that are conducted by the company (Baker, 2014). The below given are the support
activities of the Shape NZ company.
Procurement
The purchasing of raw material is done by the Shape NZ as it is considered as one of the major
activity of the supply chain management. The suppliers deliver the raw material which includes
metal that is used for the sheet, welding wire, hardware and many others to the company.
Human resource management
Shape NZ manages the talented employees within the organization as they currently employ over
more than 50 staff. These employees work with their full efficiency to support the primary
activities of the business. The company evaluate the skills of the employees and accordingly hire
the employees because this is the way through which they can manage effective people within
the organization (Wilson & Gilligan, 2012).

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Technological development
The technology development or advance is increasing in the surrounding which supports the
activities of the business. The company offers expert service to a range of industries which
include the use of technology. Technology has made the work easy for the Shape NZ.
Infrastructure
The infrastructure supports the primary activities as it includes different aspects such as
accounting, legal, administrative and the general management. These are the major infrastructure
that the business makes use for the support (Chernev, 2018). The supply chain that is conducted
by the company involves the support of the legal compliance.
The above analysis reflects the margin in which it is clear that all the Shape NZ implies that the
organization realizes the profit margin that depends on the ability of the managers to associate all
the activities of the company with the value chain. The company is operating the business
effectively and due to which it is offering the services to the Government infrastructure,
construction, transport, light rail, electronics, telecommunication UF and many others. Shape NZ
company is able to manage the different capabilities which will help them in making high
revenue. The management of the capabilities is possible with the help of effective alignment of
all primary activity and support activities of the business.
Evaluation of stakeholders in regards to a model of Porter's value chain
The stakeholders of the company play a vital role in the management of the operations of the
company. The major stakeholders of the company include the internal and external stakeholders.
In this, the internal stakeholders of shape NZ group include the stakeholders who are operating
their operations within the company only. These internal stakeholders include owners of the

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company, managers, investors and many others. On the other hand, the external stakeholders
include the suppliers and customers who mainly deal with Shape NZ. These suppliers and
customers help the company in accomplishing the objective.
The image reflect the analysis of the shareholder can be done by meeting the following given
aspects which include the key players, meet the needs, show consideration and the least
important element. These shareholders play a vital role in meeting the objective of the company
and this is the reason that the contribution of the shareholders is high in decision making of the
company. Though, this is fact that shareholders of the company might influence negatively while
making the decisions.