Nn 2016 SCM gp 1.1 ETA

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Sama-sama Chocolatier Sdn Bhd: A chocolate bar by Nafis Nirman ‘’What’s happening in a financial crisis is quest by consumers for products that are more affordable but that also overtake their expectation’’- KPMG CUL 60202 Food Supply Chain Management 1

Transcript of Nn 2016 SCM gp 1.1 ETA

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Sama-sama Chocolatier Sdn Bhd: A chocolate barby Nafis Nirman

‘’What’s happening in a financial crisis is quest by consumers for products that are more affordable but that also overtake their expectation’’- KPMG

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Impression

Source: Canva - Amazingly Simple Graphic Design Software

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Company BackgroundCompany’s name. Sama-sama Chocolatier Sdn Bhd.

Business Category. Manufacturer.

Vision. Families and communities having resources to protect the Earth.

Mission. To advocate ingredient provenance, preserve genetic heritage and reduce carbon footprint.

Value. Eating seasonal and local produce.

Corporate Office. Petaling Jaya, Selangor.

Sales and Marketing. Shah Alam, Selangor.

Factory. Pelabuhan Klang, Selangor.

Warehouse. Butterworth, Penang; Pasir Gudang, Johor; Langkawi, Kedah; Labuan, Sabah.

Outlet Store. KL City Centre, Wilayah Persekutuan Kuala Lumpur.3

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Stakeholders• Policymaker. Company Commission of Malaysia (SSM);

Department of Veterinary Services Malaysia; Federation of Malaysian Manufacturer; Halal Agency; MATRADE; Local Municipal Council; Royal Malaysian Custom; and SIRIM Bhd.

• Practitioner. Vendor = Cocoa & Dairy Farmer; Cane Grower; Sea & Land Freight Services; Aluminum Trade and Mining Centre; Coconut, Red Guava Farmers; Hibiscus Nurseries; and Commercial Real Estate for Lease.

Customer = Grocery Outlet & Discount Store; Duty-free & Travel Retail• Consumer. End-user = Female Adults (18 up to 44); Middle-Income

Group; Internet Surfers and TV Addicts; Dependent and Independent Tourist; Souvenir Hunters and Novelty Seeking Shopper.

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Market Insight

Source: A taste of the future by KPMG.5

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Types of Product• Basic. Red Guava Filled Chocolate Candy Bar (25g&50g)

• Premium. I-pad sized Organic Virgin Coconut and Pineapple Milk Chocolate Bar (350g)

• Seasonal. Crystalized Hibiscus Petal Dark Chocolate Bar (100g)

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SCM Approach

Advocating ingredient provenance, preserving genetic heritage and reducing carbon footprint.

Chocolate bar and customer care.

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Potential Impact - Positive• GHG Reduction. Limited (e.g. somewhat distributions

are within the nation, through fuel reduction) • Energy Savings. Dried fruits (e.g. somewhat in farms’

drying processes)

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Potential Impact - Negative• Waste Increment. Manufacturer (e.g. through uses of aluminum foil)

• Water Wasting. Farm (e.g. watering plants and feeding livestock)

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Future Challenges • Carbon Footprint. There is some potential through improvements

in technology, but the developments have reached a state where reductions in emissions are in conflict with energy use (Schiefer & Deiters, 2015).

• Food Wastage. Consumers receive food in the right appearance, weight, size and shape, so farmers waste large portions of their crops instead of delivering them to the retail. Standardized packaging additionally contributes to the problem of food waste in the fruit and vegetable sector (Gobel et. al, 2015).

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Recommendation• Regional. Emphasizing involvements in the view of consumers a

multitude of additional ‘goodies’ such as trustworthy claims, acceptable animal welfare considerations by responsible people, non-GMO, et cetera (Schiefer & Deiters, 2015).

• Productivity. To avoid problems at the supplier end, Sama-sama should create a department for supplier selection and evaluation (Diabat, Govindan & Panicker, 2012).

• Risk Management. A risk management planning process is then proposed to help SCM managers navigate through a logical sequence of reasoning to establish a comprehensive risk management strategy (Bandaly et. al, 2012).

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Conclusion• Overall, many of the options for food businesses and potential routes

to more sustainable food supply chains discussed can create benefits both for the businesses involved and for others in the supply chain from farmers to consumer (Smith, 2008).

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Reference• Bandaly, D., Satir, A., Kahyaoglu, Y., & Shanker, L. (2012). Supply chain risk

management — I: Conceptualization, framework and planning process. Risk Management, 14(4), 249-271.

• Diabata, A., Govindan, K., & Panickerc, V. V. (2012). Supply chain risk management and its mitigation in a food industry. International Journal of Production Research, 50(11), 3039-3050.

• Göbel, C., Langen, N., Blumenthal, A., Teitscheid, P., & Ritter, G. (2015). Cutting food waste through cooperation along the food supply chain. Sustainability, 7(2), 1429-1445.

• KPMG (2014). A taste of the future: The trends that could transform the chocolate industry. Retrieved from https://www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPublications/Documents/taste-of-the-future.pdf

• Schiefer, G., & Deiters, J. (n.d). Sustainability of food chains - meeting the challenges of the future. Journal of University of Bonn, 1-16.

• Smith, G. (2008). Developing Sustainable Food Supply Chains.Philosophical Transactions: Biological Sciences, 363(1492), 849-861.

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