An Industry Value Chain, based on Michael Porter's Value Chain, is a visual representation of the series of steps an organization in a specific industry takes to deliver a product or service to the market. It captures the main business functions and processes that are involved in delivering the end product or service, illustrating how each step adds value and contributes to competitive advantage. It often encompasses both primary and support activities.
Understanding Industry Value Chains enables organizations to improve Customer Satisfaction and Loyalty by ensuring that every component of the product or service delivery is tailored to meet or exceed customer expectations.
This PowerPoint presentation captures the Consumer Packaged Goods (CPG) Industry Value Chain, which includes the following primary and support activities:
Primary Activities
1. Raw Material Sourcing
2. Product Development
3. Manufacturing
4. Packaging
5. Distribution
6. Marketing & Sales
7. After-Sales Service & Support
Support Activities
1. Procurement
2. Technology Development
3. Human Resource Management
4. Firm Infrastructure
5. Finance & Accounting
6. Legal & Accounting
7. Supply Chain Management
8. Sustainability & Environmental Management
Each of these activities is critical to the smooth operation and success of a CPG company, and excellence in each area can lead to Competitive Advantages in a highly competitive market.
This PowerPoint presentation dives deeper into each of these activities, highlighting key elements. This presentation also discusses Consumer Packaged Goods Value Chain Analysis, highlighting a multitude of key considerations and potential insights to pay attention to. We further examine the significant impact of Digital Transformation and various specific emergent technologies on the CPG Industry.
The CPG Value Chain is critically dependent on Agile Supply Chain Management to rapidly adapt to changing consumer preferences and global market dynamics. Technological integration across the CPG Value Chain, from product development to after-sales service, is essential for operational efficiency and personalized customer engagement. Sustainability initiatives in the CPG Value Chain, particularly in sourcing and packaging, are increasingly influencing consumer choices and brand loyalty.
This presentation provides a comprehensive breakdown of the Consumer Packaged Goods Value Chain, detailing each primary and support activity essential for operational success. It emphasizes the importance of cross-functional collaboration and innovation, which are crucial for navigating the complexities of today’s fast-paced CPG marketplace.
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Source: Best Practices in Value Chain Analysis, Value Chain, Michael Porter's Value Chain, Consumer Packaged Goods PowerPoint Slides: Consumer Packaged Goods (CPG) Value Chain PowerPoint (PPTX) Presentation Slide Deck, LearnPPT Consulting
This PPT slide outlines the primary activities within the Consumer Packaged Goods (CPG) value chain, detailing 4 key areas: Raw Material Sourcing, Product Development, Manufacturing, and Packaging. Each section provides an overview of the respective activity and highlights critical elements that contribute to effective execution.
Raw Material Sourcing emphasizes the importance of procuring quality ingredients while maintaining cost-efficiency and ensuring supply chain stability. It suggests a focus on understanding the sources of raw materials, which can influence overall product quality and sustainability efforts.
Product Development discusses the necessity of researching consumer needs and developing new products that align with market demands and regulatory standards. It highlights the significance of R&D investment, time-to-market strategies, and mechanisms for gathering customer feedback, which are crucial for innovation and market relevance.
Manufacturing focuses on the conversion of raw materials into finished products. It stresses the need for efficient production lines that adhere to health and safety standards. Key elements include metrics for efficiency, quality control systems, and the flexibility of production processes to adapt to various product types.
Packaging is presented as a critical aspect that not only protects the product, but also appeals to consumers. The slide notes the importance of the packaging design process, associated costs, and its role in marketing. This section underscores how packaging can influence consumer perception and brand positioning.
Overall, the slide provides a structured view of the CPG value chain, emphasizing the interconnectedness of these activities and their collective impact on operational success.
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