Understanding Value-Added Services

Understanding value added services

Understanding value added services 6 Understanding value added services Dennis Byrd ITT-Tech Business Management Capstone Project Mwembe Company Limited is a manufacturing company limited that offers a variety of healthy and nutritious products. The products offered are essential to people with healthy lifestyles. For individuals planning a family gathering or a friend’s party where one requires to give them a special treat, Mwembe Company has the products to put the plan into action. The products on offer are the fresh juices, vegetables and fruit pudding. This is a global enterprise since it distributes its manufactured products all over the world.

Mwembe manufactures leads in producing, marketing and distributing high-quality fresh and fresh cut fruits and vegetables. Mwembe Company is the leading producer and distributor of prepared fruits and vegetables, juices, beverages and healthy snacks across the United States. Mwembe Company is dedicated to meeting current and future needs of consumers worldwide. To factor in their vision of becoming the world’s leading global supplier of healthful and nutritious, fresh and prepared food and beverages for consumers in every age level. Based on our strengths which include the wide range of fresh and prepared products.

Having a vertically integrated supply chain, the global distribution capabilities and our world-class brand the company is in a position to maintain its customers. The company aim is manufacture products that satisfy today’s health and wellness-conscious consumer demands with a level of convenience fitting perfectly into their active lifestyle. Value added products or services Mwembe Company offers to increase its profitability are; observing the off-season processing which includes, Fill local foods availability gap and fill farmers’ cash flow gap. The company should ensure that they develop value-added products from vegetables and fruits. Market those products locally.

Create a product-development methodology to share with other small-scale producers. or the developing Products there is the requirement for preliminary market analysis where a survey of the involved shareholders is carried out. Having conversation with the local people (farmers) and the consumers to find response on their product quality level. For Mwembe Company to Produce Value-Added Foods, their final recipe should be approval by Process Authority if necessary. Have also a recipe Checklist for Scheduled Process to find an easy way to track steps and document changes and corresponds to lot numbers. Embracing a digital business model.

Effective use of SCM tools within ERP or as a standalone application helps in control of a wide range of variables in a manufacturing company. These variables are purchasing costs, quality controls, pricing and speed to market. Having the right mix of Information Technology and processes contributes ultimately to a healthier and a higher margin business. Well equipped also to see and deal with unexpected changes throughout the supply chain. Digital business model contributes to customers and market visibility.

The greatest benefit of SCM tools is access to accuracy, real time data from a disparate array of IT systems, databases and even social media feeds. The information is available on anytime and anywhere basis. Through the digital model, marketing is enhanced which facilitates profitability increase. Synchronize ingredient self life to production cycles and minimize losses due to spoilage. While still leveraging volume discounts that makes sense.

Since it deals with agricultural products, the suppliers’ quantity must be considered. On packaging of agricultural products and other materials and procuring efficiently (Kimmel, Weygandt, & Kieso, 2008). Any disruption that slows manufacturing processes leads to losses with involvement of perishable food. By observing on quantity and quality supplied, there is the aspect of added value on the product offered which in return increases profitability. The company performance for the past one year of 2014 is analyzed below.

To determine the prices to be set for the final products in accordance with the costs those are associated with the manufacturing process. MWEMBE LTD MANUFUCTURING ACCOUNT FOR THE PERIOD ENDED 31st December 2014 $ $ Opening stock raw materials 20000 Add: purchased raw materials 30000 Carriage inwards (raw materials) 5000 Less: return outwards (raw materials) (4000) Cost of materials available for production 51000 Less closing stock (R.M) (8000) Cost of raw materials used 14000 Add direct labor 20000 Direct expenses 15000 Prime costs 92000 Indirect Expenses Indirect labor 5000 Indirect expenses 4000 Heating expenses 3000 Lighting expenses 1000 Depreciation of factory equipment 4000 Depreciation of factory van 2000 Factory salaries/wages 5000 Factory rent 1000 Total indirect expense 25000 Add opening work in progress 10000 Less closing work in progress (5000) Total Cost of production 122000 Manufacturing gross profit added (10%) 12200 Finished goods at transferred price 134200 To determine the prices to be set for the products it is necessary that a manufacturing account is created.

This determines the costs associated with the manufacturing process. At this level the prices to be set is $134200 per item. The actual cost associated with the item is $122000. The giveaway item in this case being the digital technology embraced where labor reduces to 5000, high percentage of manpower is replaced by automatic machines. To find the net profit having sales of $150000 by deducting the actual price to get $15800.

Paper For Above instruction

This paper explores the concept of value-added services within the manufacturing sector, using Mwembe Company Limited as a case study. It examines how strategic initiatives such as product development, supply chain management (SCM) integration, and digital business models can enhance profitability, efficiency, and market competitiveness in the food industry. The discussion emphasizes the importance of developing a sustainable value-added product portfolio, leveraging technology for operational control, and maintaining quality standards to meet consumer demand for healthy, nutritious foods.

Value addition in manufacturing is vital for differentiation in competitive markets and for meeting consumers' increasing demand for health-oriented products. Mwembe Company’s focus on fresh, prepared fruits and vegetables, juices, and snacks exemplifies this. The company’s strategy incorporates off-season processing, local sourcing, and market-specific product development. These initiatives aim to fill product gaps, support local farmers, and cater to health-conscious customers, ultimately increasing profitability.

Developing effective product development methodologies is crucial to ensure successful introduction of value-added products. Such methodologies should include preliminary market analysis through stakeholder surveys, consumer feedback, and farmer consultations to gauge product quality expectations and preferences. Recipes for value-added foods must undergo rigorous approval processes, including review by process authorities and adherence to scheduled process checklists, which ensure safety, quality, and traceability. Digital transformation plays a central role by enabling real-time data tracking, process automation, inventory management, and enhanced market visibility.

Supply chain management tools integrated within ERP systems or as standalone platforms improve control over costs, quality, and speed to market. These tools facilitate accurate procurement, inventory management, spoilage reduction, and volume discounts. For agricultural products, monitoring supplier quantity and quality is vital to avoid disruptions and minimize losses due to spoilage, especially since the products are perishable. Real-time data access and social media integration further support marketing and consumer engagement, expanding market reach.

Financial analysis of Mwembe Company’s manufacturing operations highlights the importance of cost control and pricing strategies. The company’s manufacturing account for 2014 reveals total production costs of $122,000, with a calculated transfer price of $134,200. Incorporating digital technologies has significantly reduced labor costs, realigning resource allocation towards automation and quality control. The net profit margin derived from sales of $150,000 indicates the company’s profitability and operational efficiency, affirming the strategic value of integrating technological systems and supply chain optimization.

In conclusion, leveraging value-added services in manufacturing includes integrating digital business models, efficient supply chain management, and strategic product development. These initiatives not only improve profitability but also support sustainable growth and competitive advantage. For Mwembe Company, continuous innovation, stakeholder engagement, and technological advancement are essential to maintaining its leadership in the nutritious foods industry and meeting the evolving demands of health-conscious consumers worldwide.

References

• Duesterberg, T. J., & Preeg, E. H. (2003). U.S. Manufacturing: The Engine for Growth in a Global Economy. Greenwood Publishing Group.
• Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2008). Accounting: Tools for Business Decision Making. John Wiley & Sons.
• Perrone, G., Bruccoleri, M., & Renna, P. (2005). Designing and Evaluating Value Added Services in Manufacturing E-Market Places. Springer Science & Business Media.
• Christopher, M. (2016). Logistics & Supply Chain Management. Pearson UK.
• Porter, M. E. (1985). Competitive Advantage. Free Press.
• Bartholomew, D., & Tait, T. (2019). Digital Transformation in Manufacturing. IEEE Transactions on Industrial Informatics, 15(2), 1253-1262.
• Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.
• Hugos, M. (2018). Essentials of Supply Chain Management. John Wiley & Sons.
• Ivanov, D., & Dolgui, A. (2020). A digital supply chain twin in the context of Industry 4.0. Production & Manufacturing Research, 8(1), 1-19.
• Wang, Y., & Liu, J. (2021). Blockchain technology and supply chain management: Opportunities and challenges. International Journal of Production Research, 59(2), 375-389.