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Victoria is heartland for Australian dairy industry, contributing 65% of total dairy output. The
Australian dairy industry is the third most important rural industry, with farm gate value of $3.4
billion in 2009/2010 [1]. In recent past, due to globalization and deregulation, the industry is
facing an increased level of competition. This has indicated a continuing need to improve supply
chain that creates value to the customers and maintains competitive advantage. In this regard,
this research was carried out to study if the product attributes and coordination between the chain
participants has any impact on the supply chain performance that creates the value to the
customer. This project explores the role of each supply chain participate in creation of customer
value and removing the non-value adding activities at each stage form the chain and setting the
“Analysis of the Australian dairy-food supply chains illustrates the potential of the supply chain
concept for exploring dairy-food industry development. Understanding the supply chain
dynamics provides insights into the potential drivers of change, and the resources and
capabilities likely to determine chain success in the medium and longer term. In addition to
continuous efficiency improvements, effective business strategies for individual firms and the
supply chain will need to be developed and redeveloped to accommodate the dynamic nature of
E. J. Woods, M. Wegener. This research aims to improve the efficiency of Victorian dairy supply
chain that enhances the value to the customer and to develop key performance indicators, based
on the value chain analysis. It also helps to improve the relationship between the chain
participants. It will employ various qualitative research methods and literature review to obtain