Supply Chain Management. Tehindo Tea Manufacturing Company Case Study

Supply Chain Management. Tehindo Tea Manufacturing Company - Case Study Example According to the case study, the company has two types of products, ready to drink fruit tea and ready to drink jasmine tea. The paper will also explain the characteristics of products, the nature of demand, and the supply chain structures implemented by the company, to deliver successfully their products to their consumers. Additionally, the paper will also facilitate the discussions of the various supply chain concepts, for example, supply chain coordination, bullwhip effect, and vertical integration and outsourcing. Role of the key players and supply chain concepts The company has implemented a vertical integration model where a company within the Tehindo Corporate Organization supplies tea leaves, one of the main raw materials of producing their products especially the fruity tea. The company has big parts of land, which they grow tea thus supplying over eleven sale centers with various sales offices in Indonesia. Integrating the supplier’s actions on its own has become unachievable by several companies given the need for the company to minimize inventories and be able to deliver customers’ demands on time. This has been very helpful to the company since they have been able to concentrate more on the production and distribution sections of the company. The other responsibility of the manufacturers is ensuring that the products are safe at the design stage, where they can eliminate the hazards and any potential misuse in this stage. On the other hand, the manufacturer receives the raw materials from the suppliers and produces goo ds as per the market segment and those products that will satisfy the consumer needs. In addition, the manufacturers sometimes when they sell their goods direct to the consumers that they tend to control the prices of their products. The manufacturer also receives information from the distributors, wholesalers, and retailers about the products sales thus it becomes helpful in forecasting or making a decision of which product to invest more. The distributors, wholesalers, and the retailers act as the intermediaries for the company. Their main responsibility is making sure the company’s products are safely delivered and available to consumers. The flow of information is important in the supply chain especially to the manufacturing company. Every key player in the supply chain ought to provide potential information and correct statistics that the company can use to predict its production rates and the product to produce more depending on the demand rate in the market segment. Su pply chain complexity in the company is evident it has over the years grown exponentially due to several factors such as several market segments, extended production chains, high product choice and configurations, and temporary demand cycles. For the company to be in a position of perfectly manage it supply chains, it is necessary to remove the complexity in order to get rid of the inefficiencies and the layers hidden costs. Comparative analysis of the two products/supply chain in terms of challenges The Tehindo tea company produces two major types of tea namely Goteh mainly called Jasmine tea and Fteh mostly referred to as Fruity tea. Goteh is mainly packed in glass bottles though a small