Outsourcing in Value Chain

honour CHAIN OF GOAT MILK PRODUCT shape 1 Value Chain of Goat Milk Figure 1 constitutes the value chain of goat milk product. In point to be end product, there are several buttes take ind which are work on of getting raw material then manufacturing process where the production process will take place. After that, the product will be distributed to the variant channels. Under material, there are several parties will involve such 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 separate gild rather than do 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 associated to the premier (prenominal) owner anymore.In the case of goat milk, the owner of the livestock is not been recognize anymore and lastly the finish product will be distributed to the user and consumer as a product of the packaging company. Malay proverb see this as Lembu punya susu, Sapi dapat nama means the original owner of the product has not been know and the product only been associated to the packaging and labeling company. Figure 2 INDUSTRY gather up IN THE PROCESS OF PRODUCING FINISH PRODUCT OF GOAT MILKFigure 2 show the industries involved in producing the goat milk. As can be seen, farming effort is the first industry involved where the livestock is coming from this industry. well-nigh 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 sand as the raw material to produce box and bottle then, other industry w ill 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 on a lower floor shows the value chain of the packaging process and the example of many fibre of packaging container. The figure shows the package is designed using the CAD and has been tried 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 decision acquit the producer lost the originality and owner power towards the product. Figure 3 VALUE CHAIN OF encase PROCESS Source www. nec. co. jp MATERIAL MANUFACTURE statistical distribution PRODUCT USE CUSTOMER/ USER WHOLESALER RETAILER performer PROCESSING QC LABELLING PACKAGING RAW MATER IAL SUPPLIER TRANSPORT/ logistic TECHNOLOGY SUPPLIER AGRICULTURE LOGISTIC WOOD/SAND PACKAGING OUTSOURCE