TRACTOR MANUFACTURING INDUSTRY

Value chain analysis

Raw material Primary Fabrication Distribution Retailor

manufacturing

Primary activities

PRIMARY ACTIVITES
 RAW MATERIAL

Tractor manufacturing industry has good relationship with suppliers. Industry collects raw
material in the form of Steel, plastic, glass, rubber, aluminum, Foam, textile from different sources
for production. The activities required to receive, store, and disseminate inputs done smoothly
with good facilities provided at tractor manufacturing industry plants. Transparency and
monitoring through deployment of IT.

 PRIMARY MANUFACTURING

Tractor manufacturing industry collects its raw material from different suppliers and after
collecting all the raw material needed they store it and start in the manufacturing phase of tractor,
in this phase (semi-finished) they need wiring like they collect all the necessary wires needed for
electric purpose, ignition purpose, and lighting and for much more purposes. Then they make
proper cables for the wiring purpose and after it they do all the hardware work needed in
assembling a tractor, while assembling many more things are done like forging stamping etc.

 FABRICATION

Professionalism implemented in all operations. The manufacturing capabilities of tractors

industry have resulted in achieving different tractors models. Adequate training ensuring stable
source of skilled manpower. Different operations are running in the manufacturing plants for
continuous drive to improve efficiencies. Automated manufacturing processes are applied.
Engines, wheels & axels, steering & suspension, brake system, seats & trims, electrical system,
and electronic system all the operations are carried on under the supervision of professionals.

Millat tractors limited 1

  DISTRIBUTOR

After the manufacturing of tractors

SELLING: The tractors manufactures have their own show rooms. They making it convenient for
potential customers to purchase the product. Tractor manufacturing industry has great business
relationships with a wide variety of sellers and can ensure the products are present in outlets
visited by your targeted consumers. Increased market coverage ensures customers can purchase
the products whenever they need them.

PROMOTION: Tractor manufacturers often arrange for general publicity via press releases or
articles about the products in trade magazines, distributors can take over targeted promotion.
Advertising via Print Media (Newspapers, Magazines), Broadcast Media (TV, Radio), Outdoor or
Out of Home (OOH) Media, Internet. Tractor distributors also use word of mouth marketing
because many people living in villages has very less access to media. Distributors can also arrange
for discount coupons and in-store promotions more easily because they have the contacts and
contractual relationships at the retail level. Tractor manufactures compensate distributors
directly for such initiatives, or increase their margin with the understanding that they will carry
out local promotions.

CUSTOMER SERVICE: Tractor manufactures also provide after sale services. Tractor industry has
distributors and third parties for providing preferred services.

MARKET RESEARCH: Tractor manufacturing industry use market information from the
distributors to develop the new product features that the customer want and phase out obsolete
products.

 RETAILOR

After the completion of inbound logistics like collecting raw material storing it then processing it
and then passing on this processed material from different phases of manufacturing, it includes
stamping, forging, casting and many more phases. So after being assembled the tractors are
further sent to the retailors to further sell, these retailors fill their stores according to the demand
a term is used for it named as ‘stocking shelves’ in this the retail workers who stock shelves ensure
that tractors are available for customers to buy, if product prices change, retail workers replace
the price labels on the products. Now these workers with ‘merchandising’ skills prepare the
displays and ensure that they remain in good condition throughout the promotional period, with
this customer assistance is also needed to assist the customer to buy the most suitable tractor as
per their need, after it the ‘checkout’ process starts it includes collecting the payment from the
customers and deliver the tractor as the customer wants. They also ensure their customers with
the services like warranty and exchange or return products which depicts or makes good customer
relationship.

Millat tractors limited 2