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The Kenya Power and Lighting Company’s Value Chain Essay


Every organization has a way of ensuring that it establishes a working value chain. It is critical for the success of the organization’s achievements with the customers. Kenya Power and Lighting Company is a company that can achieve great milestones in delivering service to its clients.

KPLC is an electricity company in Kenya. Kenya is one of the East African Countries on the African continent. Since independence, the company has been the primary supplier of electricity in the country. It has invested in building dams across the main rivers in the country to produce power. The dams have turbines and machines that use oil to convert the water energy into electricity (Gattorna 2009).

During the setting of the country’s Vision 2030, the company was one of the primary determinants of achieving government goals (Kaplinsky & Morris 2016). The connection was very expensive only enabling the rich people to have connections to the power supply. The company started by initiating the Rural Electrification branch. It enabled Kenyans living in rural areas to be connected.

Value Factors Solutions
High connection and consumption prices Reduce production costs
Distance from power connectivity Connect all government schools with power and everybody would be close to power
Variety of energy-saving mechanisms Introduce solar, wind energy and energy-saving batteries

People have been paying exorbitant prices for using power. It has led to many disconnections for non-payments (Yau 2012). The previous policy was for consumers to use the utility and pay after every month. The company has been sending statements to their postal addresses (Hussey & Ong 2012). Another challenge is that a lot of power has been going to waste because of some illegal connections. The company should introduce the tokens that would allow the customers to pay for the power in advance. They can buy tokens indicating the units they will consume. On depletion of the units, the power goes go off automatically.

The company can develop an App that anyone can download on the phone to monitor statements and usage of power. It already has several contracts with banks and online companies to enhance easy access to power and payment modes (Camerinelli 2009). Anyone subscribed to any telephone company that had money payment systems can still pay via the phone.

The company should increase its power supply to meet customer demands by building more turbines and dams to provide power (Simkins & Simkins 2013). It should also invest in wind power energy brand and solar energy. They would become the alternative means of power as the company continues to find other workable models to increase power.

The other value addition is to reduce the connection fee. It should mitigate this cost by almost 60%. The decision would increase connectivity by over 50% monthly. It will contribute to reduced energy mechanisms that pollute the environment. It can also reduce the excessive dependence on firewood to light homes or to cook food (Sabri & Shaikh 2010). If it goes on, it will replenish the country’s forestation policy.

The company’s development will have dealt with the four links in the simple value chain. It would design a model for the achievement of its goals. It will also increase its production levels and market them through the media and word of mouth. It will increase people’s consumption of electricity. KPLC will also introduce variety by launching other power supply mechanisms.

References

Camerinelli, E 2009, Measuring the value of supply chain, Gower, Farnham, UK.

Gattorna, J 2009, Dynamic supply chain alignment, Gower, Farnham, UK.

Hussey, R & Ong, A 2012, Strategic cost analysis, Business Expert Press, New York, NY.

Kaplinsky, R & Morris, M 2016, . Web.

Sabri, E & Shaikh, S 2010, Lean and agile value chain management, J. Ross Pub., Ft. Lauderdale, Fla.

Simkins, B & Simkins, R 2013, Energy finance and economics: Analysis and valuation, risk management, and the future of energy, Wiley, Hoboken, New Jersey.

Yau, D 2012, The first course in analysis, World Scientific, Singapore.

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IvyPanda. (2020, September 27). The Kenya Power and Lighting Company’s Value Chain. Retrieved from https://ivypanda.com/essays/the-kenya-power-and-lighting-companys-value-chain/

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"The Kenya Power and Lighting Company’s Value Chain." IvyPanda, 27 Sept. 2020, ivypanda.com/essays/the-kenya-power-and-lighting-companys-value-chain/.

1. IvyPanda. "The Kenya Power and Lighting Company’s Value Chain." September 27, 2020. https://ivypanda.com/essays/the-kenya-power-and-lighting-companys-value-chain/.


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IvyPanda. "The Kenya Power and Lighting Company’s Value Chain." September 27, 2020. https://ivypanda.com/essays/the-kenya-power-and-lighting-companys-value-chain/.

References

IvyPanda. 2020. "The Kenya Power and Lighting Company’s Value Chain." September 27, 2020. https://ivypanda.com/essays/the-kenya-power-and-lighting-companys-value-chain/.

References

IvyPanda. (2020) 'The Kenya Power and Lighting Company’s Value Chain'. 27 September.

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