Analyzing The Supply Chain Process Of Chocolate: A Comprehensive Study

Understanding Supply Chain Management

Supply chain management indicates the broader term that can help to determine the business in an appropriate manner. In order to execute and control the product flow, supply chain management activities are needed.  Through the effective supply chain management, it becomes easier to acquire the production and raw material distribution to the customers in the cost effective way. The purpose of this research is to highlight the supply chain process of Chocolate. By providing the comprehensive explanation of Supply chain management process, the relationship management approaches related to this topic will be examined.

Discussion

As stated by Christopher (2016), supply chain management encompasses the execution and planning process in order to optimize the material flow in the organization. Using effective supply chain, it becomes easier for the organizations to gain competitive advantage in the market. Contribution of each and every members from manufacture to delivery, is important for running the system. The supply chain process is being considered as the most complex process, in which the collaboration between risk management team and operation management team is very important.

It cannot be denied that, change management system is very important in the supply chain process. On the other hand, legal and social issues can influence the sustainability process of an organization. Different modelling approaches in Supply chain have higher level of contribution in terms of bringing the organizational development. In order to incorporate the decision areas, location, interventories, production and transportations are the important key elements of supply chain. In the year 1996, Harrison and Ganesh suggested 3 ways of supply chain modelling approaches, which have been considered as the global process.

In order to determine the production location, the network design is very effective. Through the network designing process, different paths of sourcing, stocking and flowing of materials are being controlled. It is also true that this is a time consuming process, due to its large numbers of operations. In this study, the supply chain process of chocolate has been highlighted. In that case, it can be said that network designing model can be used as strategy for conducting the business operations.

Simulation is also included in the supply chain model that can help to determine the dynamic characteristics of the supply chain process. It cannot be denied that in the simulation modelling, real process is being avoided, which is being considered as major limitation of this model (Govindan et al. 2014). Rough cut method is being used in the wide market. Analyzing the model it has been identified that the company needs to focus on the inventory perspectives of the management so that the operational decision making capacity can be increased.

Supply Chain Modelling Approaches

In this model different inventory management policies have been introduced. Using the round cut method, it becomes e4asioer for the organizations to introduce the inventory control model of ‘multi-level’. On the other hand, major limitation of this model is, here the production process is being ignored. Effect of transportation which is also another important part in supply chain, the model ignores the transportation process and highlight the inventory.  

In case of analyzing the supply chain process of chocolate, it can be said that planning is being considered as one of the common key process, which are being followed in every process (Monczka et al. 2015). After the planning process, information is being collected from the authentic sources. In the information geographic location, weight, quantity and types of products are being analyzed. In the information, dominant product flow data is being gathered. It cannot be denied that suppliers are the most important key persons in the supply chain.

Services and product materials are being collected from different sources through the suppliers. In order to introduce an effective supply chain system, the effective inventory management is needed. The term inventory, indicates the readymade list of raw materials, essential products and items, which are required for delivering the service.

A strong inventory management system ensures the successful business. Production is another important aspects in the supply chain management. With the availability of others supply chain components, the smoother production process can be introduced in the market. With proper planning and supply information, the products are being send for the production. In the production process, packaging, final preparation and testing operations are being involved. Depending on the distance between production house, raw material sources and market, the rate of profitability in a business can be analyzed.

Therefore, location of the firm is very important for introducing the cost effective business plan. It cannot be denied that depending on the location, the business sustainability gets influenced. Transportation is the vital process for carrying the raw materials from manufacturing location to delivery location. After completion of manufacturing process, the products are being delivered by selecting different modes of transportation.

Depending on the location of the firm, the transportation cost gets changed. Return to goods is the final stage of manufacturing process. In order to create an effective supply chain process, this process is very important. In order to ensure strong management system, the products are being listed. Depends and supply are the two important components of business. Therefore, it can be said that introducing the effective supply chain management system, effectively customer requirements are needed to be met.

Components of Supply Chain Management

Like others products, Supply chain process of Chocolate includes different steps. In that case, the production of cocoa beans to final product is a lengthy process (Wang et al. 2015). In most of the cases, the cocoa beans are being produced by the small farmers. Analyzing the Supply chain process of chocolate, it has been identified that SCP has been split into two parts, such as consuming country and producing country.  Beske Land and Seuring (2014) opined that the small farmers, produce the cocoa beans and sale it in the local trade market. From the local trade market, the cocoa beans are being distributed. In the integration trading process, the Cocoa beans are being sold in the international market.

Through the international market, the cocoa beans are being supplied to the manufacturing countries, where the cocoa beans are being converted as chocolate. After converting the cocoa beans as chocolate, the products are being sent to supermarkets through retailers. Customers get the final products from the retailers directly from the market. It cannot be deni9ed that the supply chain process of chocolate is a complex process. In the process, large series of activities are needed for converting the cocoa beans to the ultimate product.

In the process harvesting as well as refining process of cocoa beans are being involved (Wolf 2014) . After this process the cocoa beans are being sent to the manufacturers for coaching, grinning and cleaning. Therefore, it can be said that it is very harder to convert the raw material into ultimate product in case of chocolate. It has been identified that large numbers of hands are responsible for making the production process of chocolate.

However, it cannot be denied that most of the customers are not aware of the complexity behind the wrap of the chocolate. In the words of Accorsi et al. (2016), ssupply chain of chocolate has major contribution in terms of flourishing the economic condition of large numbers of farmers. Analyzing the current market demand of chocolate, it can be assumed that it is one of the important demandable products in the global market. It is also true that analyzing the current supply chain process of chocolate, it has been identified that farmers who are involved in the supply chain process are still fighting for financial crisis.

In fact, most of the small cocoa bean farmers’ financial condition is declining day by day. Examining the current situation, it has been identified that most of the cases the supply chain intermediates are being distrusted for squeezing the margin of the exact value compared to the add. In such situations, the intermediates get the opportunity to redirect the power in the market. As its result, the entire supply chain process can be affected.

Conclusion

In this study, it can be concluded that the supply chain process has higher level of contribution in terms of introducing successful business operations. Highlighting the complex supply chain process of chocolate, different loop holes of the process have been discussed. Different process of a standard supply chain and various roles of those aspects have been focused in this study. Examining the entire study, it has been identified that the location transport, inventory and production are the important key components in the supply chain process.

The major complexity in the supply chain process increases due to improper financial support towards the cocoa beans farmers. It mends the cocoa bean producing countries face the financial loss where the chocolate product producing countries gain the maximum profit from the same product.

References

Accorsi, R., Ferrari, E., Gamberi, M., Manzini, R. and Regattieri, A., 2016. A Closed-Loop Traceability System to Improve Logistics Decisions in Food Supply Chains: A Case Study on Dairy Products. In Advances in Food Traceability Techniques and Technologies (pp. 337-351).

Beske, P., Land, A. and Seuring, S., 2014. Sustainable supply chain management practices and dynamic capabilities in the food industry: A critical analysis of the literature. International journal of production economics, 152, pp.131-143.

Christopher, M., 2016. Logistics & supply chain management. Pearson UK.

Govindan, K., Kaliyan, M., Kannan, D. and Haq, A.N., 2014. Barriers analysis for green supply chain management implementation in Indian industries using analytic hierarchy process. International Journal of Production Economics, 147, pp.555-568.

Jia, F., Wang, X., Mustafee, N. and Hao, L., 2016. Investigating the feasibility of supply chain-centric business models in 3D chocolate printing: A simulation study. Technological Forecasting and Social Change, 102, pp.202-213.

Monczka, R.M., Handfield, R.B., Giunipero, L.C. and Patterson, J.L., 2015. Purchasing and supply chain management. Cengage Learning.

Wang, G., Gunasekaran, A., Ngai, E.W. and Papadopoulos, T., 2016. Big data analytics in logistics and supply chain management: Certain investigations for research and applications. International Journal of Production Economics, 176, pp.98-110.

Wolf, J., 2014. The relationship between sustainable supply chain management, stakeholder pressure and corporate sustainability performance. Journal of business ethics, 119(3), pp.317-328.