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Enbridge Inc. Global Value Chain Evaluation
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Enbridge Inc. Global Value Chain Evaluation
Introduction
Calgary, Alberta, Canada, serves as the corporate headquarters of Enbridge Inc. It owns and manages pipelines in Canada and the US that move crude oil, natural gas, and natural gas liquids. Enbridge owns North America's largest pipeline network.
Domestic and International Markets
Enbridge conducts business throughout North America through its four primary businesses—liquid pipelines, natural gas pipelines, gas utilities and storage, and renewable energy—enabling society, supplying safe, dependable, affordable energy sources, and supplying industry. The company transports nearly 20% of natural gas consumed in the United States, 30% of crude oil produced in North America, and operates the third-largest natural gas utility in consumer numbers. Enbridge has a growing offshore wind portfolio and was a pioneer in renewable energy investment (Enbridge, 2022). Enbridge supplies natural gas to most of Florida, the Southeast, and
New England.
International Marketing Concepts
Enbridge evaluates its strategy annually to ensure it is on track to meet its objectives, expand the company, and create value for clients, shareholders, and employees. This is accomplished by considering the business environment, current energy fundamentals, stakeholder priorities, and competitor positioning. To ensure the
business's resilience, the company regularly analyzes its resources and strategy under various scenarios. Finally, the company looks for opportunities to maximize and enhance value. This all-encompassing approach has an impact on the company's decision-making.
In general, the company declares that it will grow in this year's strategy, making new investments in each of its businesses while increasing the value of its current assets by determining how to increase earnings and productivity. The company also intends to organically expand its core businesses by leveraging its capabilities, collaborating closely with clients, expanding and extending its current footprint, and investing in low-carbon platforms (Enbridge, 2022)..
International Markets
20% of the gas used in the US is transported by Enbridge's natural gas network. Gas transmission and midstream pipelines span 119,648 kilometers offshore in the Gulf of Mexico, five Canadian provinces, and 30 U.S. states (Enbridge, 2022).. They
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extend up into New England and the Atlantic provinces, from the far northeast of British Columbia to Florida's southernmost point.
Strategy
The annual Sustainability Reports address three priority topics that are of particular interest to our stakeholders: stakeholder and Indigenous inclusion, climate, energy solutions, and sustainability. These reports also provide an overview of the company's management style and performance.
Primary and Secondary Activities
Primary Activities
Marketing and Sales
Enbridge Inc.'s marketing and sales activities include using a sales force, advertising, promotions, pricing, selecting a channel, quoting, and cultivating relationships with channel participants. The company can use the marketing funnel approach to organize its marketing and sales activities. Marketing strategies can be pushed or pulled depending on Enbridge Inc.'s business goals, brand image, competitive dynamics, and current market position (Chae, 2009).
Enbridge Inc. can establish its brand and distinguish itself from the competition by implementing effective and deftly integrated marketing strategies. Enbridge Inc should make only speculative promises about product features that the production team can deliver. It implies that coordination between various value chain activities is required.
Secondary Activities
Firm infrastructure
Quality control, legal issues, accounting, financing, planning, and strategic management are all examples of "firm infrastructure" tasks. When infrastructure management is done correctly, it can (Chae, 2009). Enbridge Inc. will add value to every link in the chain. Enbridge Inc. can improve its competitiveness by managing infrastructure costs, also known as overhead expenses.
Human resource management
Enbridge Inc. can conduct a human resource management analysis by evaluating various HR factors such as hiring, selecting, training, rewarding, performance management, and other personnel management activities. Enbridge Inc. can reduce competition pressure through effective human resource management based on its
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workforce's motivation, dedication, and skills. By comparing the costs of hiring and training employees with their potential returns, the company can move closer to its cost-cutting goal. Because Enbridge Inc. relies heavily on employee talent, the importance of this value chain support activity will grow.
Supplier Relationship Management
Suppliers are evaluated by the company as part of the Supplier Management program, from registration to off boarding, and at various points throughout the supplier life cycle. Pte-qualification ensures that all suppliers are screened and that we
only work with those who meet our stringent requirements. The company uses internal subject-matter experts and ISNetworld, a global resource for contractor and supplier management, to pre-qualify suppliers and track ongoing supplier performance (Fredereicko et al., 2019).
Inbound Logistics
It is critical to cultivating strong relationships with suppliers due to the need for their assistance in receiving, storing, and distributing the product. To avoid problems during the product development process, Enbridge Inc. must consider inbound logistics. When conducting an inbound logistics analysis, an organization must examine every stage of transformation, from raw materials to finished goods. Inbound
logistics involves obtaining raw materials, storing inputs, and internally distributing raw materials and components to begin production.
Outbound Logistics
After passing through a number of middlemen, goods are delivered to customers using outbound logistics procedures. Material handling, warehousing, planning, order processing, transportation, and delivery to the destination are all included in outbound
logistics (Fredereicko et al., 2019). Enbridge Inc. can assess and enhance outbound logistics to gain a competitive edge and fulfill its corporate growth goals.
When outbound activities are managed quickly and with little impact on product quality, customers are happier and there are more opportunities for the business to grow. Enbridge Inc. should give priority to its outbound value chain activities when its products are perishable and need to be delivered to the customer quickly.
Operations Management
When raw materials are delivered, and Enbridge Inc. is ready to transform and market them, it is critical to analyze operational activities. Testing, machining,
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packing, and assembling are examples of operational activities. This includes equipment maintenance and repair.
Manufacturing and service operations are both covered. Analysis of operational activity is critical for increasing productivity, maximizing efficiency, and ensuring Enbridge Inc.'s competitive success. With increased productivity, Enbridge Inc. may achieve consistent economic growth, increase profitability, and lay a solid foundation for competitive advantage (Enbridge, 2022).
Distribution Management
Some significant industrial, commercial, and power generation customers receive
natural gas directly from these sources, despite the fact that high-capacity interstate and intrastate pipelines are typically contracted through natural gas marketing companies (Enbridge, 2022). Others, however, obtain their natural gas from a nearby distribution firm, or a neighborhood gas utility.
In contrast to direct transmission, distribution typically takes place over smaller distances and at lower pressures. Similar to larger interstate and intrastate pipelines, local distribution businesses uphold the highest standards of safety to prevent accidents that could be avoided and hasten the repair of distribution network problems.
Customer Relation Management
The Company upholds its obligations to customers by guaranteeing the security of the systems and offering the highest levels of dependability, ensuring efficiency so that customers pay the lowest reasonable costs for their services, and completing growth projects on schedule and within budget while upholding high standards of safety, quality, environmental compliance, among other things.
Performance Management
The company's sustainability strategy addresses the most important environmental, social, and governance (ESG) issues by encouraging transparency and accountability. Enbridge strives to meet the information needs of stakeholders through
sustainability reporting while also being accountable for its actions and dedicated to constant development (Enbridge, 2022).
The annual Sustainability Reports address three priority topics that are of particular interest to our stakeholders: stakeholder and Indigenous inclusion, climate, energy solutions, and sustainability. These reports also provide an overview of the company's management style and performance.
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Overall Objectives
The goal of Enbridge is to provide energy that enhances people's quality of life. The Company is essential to the prosperity and well-being of North American society,
which depends on dependable, affordable, and sustainable energy.
In terms of innovation, the company intends to develop high-tech products that will deliver energy safely and consistently to power a rapidly innovating world. In the energy transition, the company has demonstrated its ability to adapt to change and identify business opportunities. The company has grown to be one of North America's largest and most successful energy infrastructure companies by supplying oil, natural gas, natural gas liquids (NGL), and renewable energy (Enbridge, 2022).
Because it is a leading energy infrastructure company with assets spread across the energy system, the company has a unique vantage point from which to capitalize on global energy trends.
E
ffective and Efficiency
Enbridge provides people with the energy they need in a safe and dependable manner. Furthermore, they strive to deliver it as effectively and efficiently as possible,
reducing energy requirements and the environmental impact of the operations. However, energy consumption is only one aspect of efficiency innovation. To ensure effective services, the entire company must be streamlined and simplified (Enbridge, 2022)
. Working less and getting the same results faster is the goal. It is all about giving their all. Efficiency enhancements reduce the negative effects of their operations, such as lower energy consumption, and they benefit the employees, resulting in improved safety, increased focus and engagement, and better, faster decision-making.
Value Chain Management
As mentioned in the subtopics above, the value chain in Enbridge's management can be seen in the various business activities and processes involved in producing a good or providing a service. The company has grown by carrying out its operations uniquely and efficiently.
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References
Enbridge, (2022). Building Connections: 2022 Sustainability Report
Chae, B. K. (2009). Developing key performance indicators for supply chain: an industry perspective.
Supply Chain Management: An International Journal.
Frederico, G. F., Garza-Reyes, J. A., Anosike, A., & Kumar, V. (2019). Supply Chain 4.0: concepts, maturity and research agenda.
Supply Chain Management: An International Journal.
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