Outsourcing in Value Chain

VALUE CHAIN OF coffin nail MILK PRODUCT Figure 1 Value Chain of Goat Milk Figure 1 shows the shelter chain of goat milk overlap. In order to be end growth, in that location be several processes learnd which are process of getting raw material then manufacturing process where the toil process impart take place. After that, the product will be distributed to the various channels. Under material, there are several parties will involve much(prenominal) as raw material supplier, transportation/ logistical and technology supplier.Then, at the manufacture phase there will be some processes involve such as processing, quality control, packaging and labeling. Packaging will be focus because of most of the producer will outsource this process to other company rather than done by themselves. The reason of this outsourcing will be because of lack of skill and technology for the packaging process. When, the packaging and labeling are done by other company, the product will be not associ ated to the first owner anymore.In the case of goat milk, the owner of the livestock is not been recognized anymore and lastly the finish product will be distributed to the user and consumer as a product of the packaging company. Malay proverb call this as Lembu punya susu, Sapi dapat nama means the original owner of the product has not been recognized and the product only been associated to the packaging and labeling company. Figure 2 INDUSTRY INVOLVE IN THE PROCESS OF PRODUCING FINISH PRODUCT OF GOAT MILKFigure 2 show the industries involved in producing the goat milk. As can be seen, Agriculture industry is the first industry involved where the livestock is coming from this industry. roughly of the parties involved in this industry are Malay and Indian. Then, in order to package the product, it can be choose whether to use, bottle, box container, can and so on. For box and bottle for example, it will use woods and keystone as the raw material to produce box and bottle then, oth er industry will involve too.Then, the distribution process will involve with logistic company. Therefore, in producing a bottle or a box of milk, there are many parties and industries involved and take placed. Figure 3 below shows the value chain of the packaging process and the example of many type of packaging container. The figure shows the package is designed using the CAD and has been tested and evaluate before start the production process for the packaging. However, some companies do not use such as technology equipment in doing the packaging.This kind of packaging process should be done by the producer company and not supposed outsource the process because the outsource ratiocination make the producer lost the originality and owner power towards the product. Figure 3 VALUE CHAIN OF promotional material PROCESS Source www. nec. co. jp MATERIAL MANUFACTURE DISTRIBUTION PRODUCT USE CUSTOMER/ USER interlocutor RETAILER AGENT PROCESSING QC LABELLING PACKAGING RAW MAT ERIAL SUPPLIER TRANSPORT/ LOGISTIC engineering SUPPLIER AGRICULTURE LOGISTIC WOOD/SAND PACKAGING OUTSOURCE