Value chain analysis is a most
pertinent tool used to analyse internal company activities. This analysis represents all the
internal activities of a company’s production of goods and services. The primary objective of this analysis
is to perceive which activities are most significant to a company or industry
and which ones need to make better in order to gain a competitive advantage. As
such, by understanding and analyzing the internal activities of the company,
the company will realize its competitive advantages and disadvantages as well.
In the following discussion, we will analyze the company using the framework
that consists of primary activities and support activities. The primary
activities comprises of inbound logistics, outbound logistics, marketing and
sales, operations and services. However, the support activities included procurement,
technology development,
human resource management as well as firm’s infrastructure.


First and foremost, inbound logistic is a primary
activities that
is included in value chain analysis of PERODUA Company. PERODUA can gain competitive
advantage in the aspects of inbound logistic since it has a good relationship
with its suppliers. PERODUA offers the Electronic Supplier Information &
Management System (E-Sims) to achieve suppliers. With the implemented of
E-Sims, PERODUA can improve
communication relationship with its supplier in a collaborative environment.
 Regardless of the local or other country’s supplier, PERODUA and its
supplier still can contact and response to each other in a more effective and
efficiency manner through the supply chain innovation. However, the
activities required to receive, store, and disseminate inputs are carried out
smoothly by complying good facilities provided at the PERODUA plant. PERODUA
also possesses efficient storage facilities to ease storage and recovery. Besides,
PERODUA also deploy IT to ensure monitoring goes well and being transparency. Through transparency, IT can streamline processes,
increase productivity, and improve customer service and support. On the
employee side, PERODUA’s employees have the ability to supervise the smooth
transit of merchandise. This can ensure the quality of its product and reduce
the defective product be offer to customer. PERODUA also possesses efficient
storage facilities to ease storage and recovery.

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Moreover, outbound logistics is another primary activity.
 Outbound logistics mean all the activities that need to collect, store,
and distribute of output. PSSB has 41 sales branches and 139 sales dealers
across the country, to provide efficient and convenient service to its clients.
Each PERODUA branch takes the responsibility of serving its respective area
customer. Besides, PERODUA have a systematic process in managing all of the
output. Dealing with the logistics included associated with moving completed
vehicles from manufacturing plant to merchants (or sometimes, straightforwardly
to clients) needs a broad transportation and intermittent storage system. As a
result, PERODUA provided efficient transportation and well trained employees to
deal with its output. Employees will ensure the shipping process go smooth and
make adjustments promptly when need. Also, PERODUA possess a productive
security framework, it can prevent the probability of any form of pilferage. This
will reduce the possibility that PERODUA to be involved in the situation
regarding the plight of loss. Overall, the industry has afforded equivalent
attention in managing outbound logistics. Hence, Perodua can increase the
efficiencies and lessen wastage in the general production network.


In the services aspects, PERODUA possess 46 service branches and 117
service outlets throughout Malaysia which provide customers with convenient
services. That is, customers can easily buy a car
from any sales branches that they feel convenience to go. Besides, Perodua
always keeps their goods or services Working Effectively for their clients even
after sale and delivery. Perodua make Body Repair & Paint Centres available
to its customer across the country. The services provided by body repair and
paint centres included 24 hours towing service, accident repair, insurance
claim as well as body repair and paint. The insurance claim provided by Perodua
consist of speedy claim approval for claim below RM5,000 and Hassle-Free
Windscreen Claims. However, PERODUA will be giving their client a quality
repair services with employed of skilled technician. This repair services is
important and will benefit customer because it quality assurance for overall
services. In addition, PERODUA also have service information and service
package provided for the customer. That is, Perodua will
also offer advice and suggestion to its customer regarding how to apply loan
for purchasing a vehicle. Also, Perodua offers the opportunity to let
customers state their problem or dissatisfaction through a tailored tool. That
is, PERODUA provided ‘RESOLVES’ to its customer, it is an entirely independent
issue-resolution tool that
allow the raising and handling of client problem, which make complaining more
straightforward for all individual. This tool is very easy to use and tailored
to each type of problem. Sometimes, customer may feel dissatisfied with the
initial response from PERODUA, however the escalation process can resolve this
aspect of problem. Escalation process will inform the particular clients when
their problem or complaint will be raise to the next level of seniority such as
inspector or regulator.

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