By Lucia Böhles, Evan Müller, Leonardo Barbini and Louise Corneille | Bachelor in Management -BSc- Programme, ESCP Business School | Edited by Komoneed
Mercedes-Benz Sustainable Value Chain Analysis
Mercedes-Benz is a renowned luxury automobile brand headquartered in Stuttgart, Germany. Established in 1926, it has since become an influential force within the industry for its cutting-edge vehicles that combine performance, style, and technology. As part of Daimler AG – one of the world’s largest automotive producers – Mercedes-Benz has produced over 2.3 million vehicles over recent years.
Mercedes-Benz has a global presence, operating in more than 150 countries with an extensive lineup of automobiles such as sedans, SUVs, coupes, and convertibles. Its iconic three-pointed star logo symbolizes their commitment to producing vehicles for land, sea, and air transportation – a legacy from its early days in the automotive industry.
It has long been at the forefront of automotive innovation, introducing revolutionary technologies such as advanced safety systems, efficient engines, and connected car technologies.
They have been a pioneer in developing electric and hybrid vehicles with models like EQC and EQS leading the charge towards sustainable transportation.
Mercedes-Benz, with annual revenues exceeding $100 billion, has made a name for itself in the automobile sector through its commitment to quality, innovation, and luxury. As such, it continues to be highly respected and sought-after by drivers and car enthusiasts around the world.
The Value Chain
Infrastructure
Mercedes-Benz has an intricate organizational Infrastructure, reflecting its size and extensive operations. Directed by Daimler AG’s Board of Management, this division is further subdivided into multiple departments and regional branches for convenience.
Its extensive global Infrastructure consists of cutting-edge manufacturing facilities, research, and development centres, as well as regional offices to facilitate efficient production and distribution of its diverse fleet of vehicles.
Mercedes-Benz has a global network of dealerships and service centres to offer exceptional customer support and after-sales services.
The company continuously invests in developing and upgrading its Infrastructure with cutting-edge technologies and sustainable practices to remain at the top of its industry.
Human Resource Management
Mercedes-Benz places great emphasis on effective human resource management, understanding that employees are essential to its success and ability to remain a leader in luxury automotive markets. Their HR strategy strives to foster an inclusive workplace, promote employee wellbeing, and invest in professional development of employees.
It has implemented various initiatives and programs to promote diversity and equal opportunities within their organization.
Mercedes-Benz is dedicated to protecting the health and safety of its employees. To this end, they have implemented numerous safety measures and policies such as regular safety training, workplace inspections, and ergonomic assessments to minimize the risk of accidents or work-related injuries.
Mercedes-Benz strictly prohibits any form of forced labour – including child labour – within its operations.
It employs an innovative human resource management strategy that ensures their workforce is diverse, skilled, and engaged to meet the challenges and opportunities presented by a rapidly transforming automotive industry.
Technology Development
Mercedes-Benz is renowned for its relentless commitment to technological innovation in the automotive industry. The company invests heavily in research and development, focusing on various aspects of vehicle technology like safety, performance, efficiency, connectivity, and sustainability.
It has made a lasting impact in the automotive industry through its pioneering work with advanced safety systems. Technologies like Electronic Stability Program, PRE-SAFE and ATTENTION ASSIST have revolutionized vehicle safety and are now widely adopted across other brands. Furthermore, Mercedes-Benz is actively working on developing autonomous driving capabilities; some of their models already feature semiautonomous capabilities like the DRIVE PILOT system in the S-Class.
It is a leader in the development of electric and hybrid vehicles, as evidenced by their EQ sub-brand, which includes models like the EQC SUV and flagship EQS sedan. These advanced vehicles, featuring advanced battery technology and cutting-edge charging solutions, are helping create an environmentally friendly future in transportation.
Procurement
Mercedes-Benz follows a rigorous procurement process to guarantee the highest quality raw materials and components from suppliers worldwide. The company places great emphasis on responsible sourcing, prioritizing suppliers that meet its stringent quality, environmental, and social responsibility criteria.
It uses a comprehensive supplier evaluation system to assess and select its suppliers, considering factors like financial stability, technical capabilities, quality management systems and environmental/labour standards adherence.
Mercedes-Benz’s commitment to responsible sourcing can be seen in their approach when procuring critical raw materials for electric vehicle batteries, such as cobalt and lithium. To guarantee these materials are sourced ethically and sustainably, the company collaborates with suppliers on traceability mechanisms and conducts regular audits.
The meticulous and responsible procurement strategy upholds their commitment to sustainability and social responsibility throughout every stage of the supply chain.
Inbound logistics
Mercedes-Benz relies on an efficient inbound logistics network to efficiently handle the transportation of raw materials and components from suppliers to its factories.
It utilizes advanced supply chain management systems and technologies, such as real-time tracking, data analytics, and route optimization, to optimize their inbound logistics.
The company utilizes various modes such as trucking, rail, air or sea depending on distance, urgency, and environmental considerations.
Outbound logistics
Mercedes-Benz’s outbound logistics operations focus on the efficient and sustainable distribution of finished vehicles from factories to dealerships and customers around the world.
Mercedes-Benz utilizes a variety of transportation modes and is researching alternative fuels for their fleet and investing in eco-friendly solutions like electric trucks for local deliveries.
It has achieved high levels of efficiency and customer satisfaction through refining and expanding their inbound and outbound logistics operations, while simultaneously reducing their supply chain and distribution activities’ environmental footprint.
Operations
Mercedes-Benz’s operations span a wide range of activities, such as vehicle design and engineering, manufacturing, assembly, and quality control. Their advanced global Infrastructure includes state-of-the-art manufacturing plants, research centres and testing facilities that enable them to produce high-quality innovative vehicles that meet the brand’s exacting standards.
Their team of skilled engineers and designers work closely together using advanced tools such as computer-aided design software, virtual reality simulations and rapid prototyping techniques to bring their visions to life.
Their assembly lines make use of advanced robotic systems, artificial intelligence, and digital manufacturing solutions to streamline production processes and minimize errors. At the same time, skilled human workers play an essential role in overseeing and refining these procedures to guarantee that the final product meets the brand’s exacting standards.
Mercedes-Benz places great emphasis on quality control throughout their operations including extensive durability testing, crash simulations, performance evaluations in controlled environments as well as real world driving conditions.
Sustainability is a top priority in Mercedes-Benz’s operations, and the company is actively working to reduce its environmental impact through energy-saving production processes, investments in renewable energy sources and promotion of waste reduction and recycling initiatives across its facilities.
Marketing and sales
Mercedes-Benz uses a comprehensive marketing approach to promote its products, boost brand awareness, and preserve its prestigious image in the global automotive market. By combining traditional and digital tactics, it effectively reaches its intended audience while conveying core values such as innovation, luxury, and performance.
Mercedes-Benz actively engages in event marketing, sponsorships, and partnerships to enhance its brand presence and create deeper connections with consumers. Examples of this include its longstanding association with Formula 1 racing, sponsorship of high-profile golf and tennis tournaments, as well as collaborations with luxury fashion brands and art institutions.
It also places great importance on providing its customers with an unrivalled sales experience.
Service
Mercedes-Benz prioritizes customer service and has created an extensive training program for their customer service employees. It also works to hone communication, problem-solving, and sales skills within these employees.
Ongoing training is provided to guarantee employees remain knowledgeable about the newest models, features, and innovations so they can provide customers with the highest level of service possible.
Mercedes-Benz can demonstrate their dedication to environmental stewardship through their supply chain in the Dach area, reduce its environmental impact, and enhance their reputation as a socially responsible company.
Detailed Articles
- Environmental Impact of BMW, Mercedes-Benz, and VW in DACH
- BMW Sustainable Value Chain Analysis
- Mercedes-Benz Sustainable Value Chain Analysis
- Volkswagen Group Sustainable Value Chain Analysis
Sources
- BMW-Group-Lobbying-Policy-March-2021.pdf (bmwgroup.com)
- BMW Leadership and BMW Organizational Infrastructure – Research-Methodology
- More sustainable logistics at the BMW Group
- Sustainability | Volkswagen Group (volkswagen-group.com)
- VW Group Homepage
- From mine to factory: Volkswagen makes supply chain transparent with blockchain | Volkswagen Newsroom
- Intelligent supply and transportation control at the VW Group (eurolog.com)
- Human rights in the supply chain | Mercedes-Benz Group > Sustainability > Human rights > Supply Chain
- Sustainable supply chain management at Daimler | Mercedes-Benz Group
- Mercedes-Benz Launches Sustainable Supply Chain Initiative for EV Battery Sourcing – ESG Today
- Mercedes-Benz AG and Hydro partner for sustainable aluminium supply chain – Just Auto (just-auto.com)
Images
- Moerschy in Pixabay
- Rezaqorbani in Pixabay
- Daniel Andraski in Pexel
- Cottonbro Studio in Pexel
- Andrea Piacquadio in Pexels
Who knew the value chain could be so fascinating? Mercedes-Benz really knows how to keep things interesting!
Who knew that Mercedes-Benzs value chain could be so sustainable and efficient? Impressive stuff!
never knew Mercedes-Benz had such a detailed sustainable value chain analysis! Impressive stuff!
Who knew analyzing value chains could be so intriguing? Mercedes-Benz got me hooked!
Hey guys, did you know that Mercedes-Benz has a sustainable value chain analysis? So cool! 🚘💚
thats impressive! Its great to see a luxury car brand putting efforts into sustainability. Its about time more companies prioritize these issues. Kudos to Mercedes-Benz for leading the way in the automotive industry. 🌿👏
That article on Mercedes-Benz Sustainable Value Chain Analysis was so mind-boggling! Who knew cars had such complex infrastructures?
Im amazed that you found that article mind-boggling. Its common knowledge that cars are complex machines. Maybe you should do some more research before commenting next time.
Cant believe Mercedes-Benz is so focused on their value chain! I mean, who even cares about infrastructure and HR management? 🙄
Seriously? Infrastructure and HR management are crucial for any successful organization. Mercedes-Benz understands the importance of a well-rounded approach to business. Maybe you should educate yourself before criticizing their strategy.