Overview of Sugarcane Supply Chains

1.0Overview of Sugarcane Supply Chains

Processed manufactured good, referred to as sugar, is usually generated from cane and beet sugar. Around three tons of sugar cane is derived globally for each ton of sugar gotten from sugar beet. Sugarcane manufactured goods consist of sugar tables, molasses, ethanol, and energy. Sugar is necessary physiological energy for carbohydrates (Eggleston and Lima, 2015). Sugarcane is a tropical plant growing in a variety of situations with a water level of approximately 1500 meters in the world. Nevertheless, the optimal environment comprises a long, hot season and a somewhat dry yet chilly season. The bulk is generated in Germany, India, Brazil, Thailand, Australia, Pakistan, China, and South Africa.

1.1 Sugarcane Supply Chain

The sugar cane supply chain comprises growth, harvest, transport, and processing. Sugarcane harvesting ages range from 12 to 24 months due to climate and pest resistance. Cane is roasted or green cut before harvest. The cane is physically or automatically harvested. In South Africa, the staff split the cane and stack it on the floor before loading it onto a car to the factory. Growers have their trucks or cane haulers. A mechanical harvesting device removes and loads a billeted cane trailer (López Milán and Plà Aragonés, 2015). The time to take the cane varies on the amount of cane, automobile type, weather and road conditions, and distance from the mill. At the mill, the cane is released to stock or directly to the spill table. Finally, the cane is processed to make sugar and molasses. The configurations of manufacturing, harvesting, transportation, and frying systems vary for every mill. Stakeholder collaboration is critical to increasing organizational efficiency and eliminating supply chain inefficiencies. Farmers, harvesters, haulers, and millers are the four main stakeholders in sugar manufactured goods (López Milán and Plà Aragonés, 2015). The management of mills is critical in sugarcane supply chains. Three alternative scenarios are usually utilized in terms of ownership of farming and milling in the sector. The following are:

1. The miller owns several farmlands in the milling area
2. Thousands and cultivators are distinct entities
3. The cultivators own the mill

The miller measures the sugar content of each ton of crushed cane. The cultivator intended to cut costs. The transport company concentrates on cheaply loading and transporting cane to the facility. The supply chain is a single entity. Many stakeholders in the supply chain may make cooperative decisions that boost revenue (Eggleston and Lima, 2015). These choices can also address tactical strategic planning difficulties. Sugarcane stakeholders, like most businesses, compete to reduce costs and maximize net revenue.

2.0 Sourcing and Procurement

2.1 Eston Sugarcane Milling Region

The sugar cane is made of several elements, including fiber, water, sucrose, and non sugar. These implications on the kind of soil, cane variety, climate, ripeness, and processes of handling. Low fiber, low sugar, and high sucrose are the main components that lead to an enhanced recovery in sugar (Asrol et al., 2021). Raw sugar is indeed not good for producing excessive fiber because it decreases the amount of sucrose that can be recovered. Nevertheless, fiber is needed to generate electricity for such mills including for other by manufactured goods such as paper.

2.2 Bases of Sugarcane Supply Chain Irregularities

In other supply networks, numerous factors each have diverse implications that generate unpredictability and inconsistencies in the supply chains of sugarcane. These factors are interrelated. This section examines the main aspects of the supply chain, ranging from the ground to raw sugar manufactured goods, where inconsistency influences the system (Asrol et al., 2021). The two main properties examined are the consistency of cane quality and consistency of the cane flow in tons per day.

2.3 Cane Quality Consistency

Various properties are linked throughout the sugarcane supply chain and affect the consistency of cane quality. The frying season and the type of canes are essential factors that can lead to quality incoherencies. The longer frying season results in changes in the manufactured good and quality of cane. The decrease in cane occurrence depends largely on BHTCD, present temperature, humidity, and insect and diseases exposure.

2.4 Cane Flow Consistency

Sugarcane is generally burned, competed, loaded, transported, and unloaded from the farms to the mill (Eggleston and Lima, 2015). Several considerations affect the regularity of the flow of sugar cane. The weather is a key cause of irregularities in cane flow. At daybreak is the perfect time to burn cane. However, the prolonged exposure to late afternoon and evening sun could result in reduced labor manufactured good activity when the cane is physically harvested.

3.0Supply Chain Coordination and Resilience

3.1 Strategies to Improve Sugarcane Supply Chains

Due to the multiple discrepancies, different tactics, or methods for improving sugarcane supply chains have been proposed (Asrol et al., 2020). These tactics must be flexible so that uncertainties are always shifting. These consist of, for example, (a) enhancing communication and cooperation between the supply chain associates, (b) establishing an appropriate sugar payment system, (c) storage, (d) reorganizing the harvest schedule, and (e) new coordinated rules on the allocation of delivery to reduce transport inconsistencies (Asrol et al., 2020).

3.2 Communication and Collaboration

Throughout the sugarcane supply chain, where mills and farms are controlled with distinct bodies, the relationship and cooperation between the various players are crucial. Increased feedback, interaction, and efficient administration diminish the variances in manufactured good quality, deterioration, the influence of bullying, and consequent inconsistencies in cane quality (Asrol et al., 2020). To minimize conflicts between chain entities, the stakeholders must develop collaborative strategic initiatives rather than individual perspectives.

4.0Sustainability & CSR

4.1 Triple bottom line for Sugar Industries

In various industries, renovation, reuse, and recycling are the key ideas for sustainable manufacturing that apply to every phase of manufactured goods and business practice. Sustainable development must also ensure that current demands are addressed without affecting future generations ability to cope using their resources (Morales Chavez et al., 2020).

Sustainable development is founded on the triple conclusion of social responsibility, economic viability, both restricted by environmental restrictions must be safeguarded. Supportable growth must realize the well being of human systems helped by a natural healthy environment and having the same impact on our planets resources in the future (Morales Chavez et al., 2020).

5.0Overview of Coca Cola Supply Chains

Atlanta Coca Cola Company produces a purified syrup and distributes it to Coca Cola Enterprises or a new bottling associate for Northern American and Canadian circulation. The bottling associate is passed to a processing company that combines syrup with numerous additional ingredients like filtered water and sweeteners. The finished manufactured good is subsequently packed and delivered by the bottler to distributors (Scott, Lundgren, and Thompson, 2018). The Coca Cola Export Corporation (TCCEC) connects the local shippers globally and supplies the beverage in the local markets concerned.

5.1 Coca Cola Supply Chain

Coca Cola is a globally local firm. This means that roughly 225 bottling associates are currently available globally. The supply chain starts with the purchase of Coca Colas agricultural manufactured goods and water (Sambrani & Pol, 2016). Locally, the most important elements are generated, like sugar and water, and the collaborators can simply select the sugar they use. Beet sugar is widely utilized in Europe, Asian cane sugar, and American maize syrup sugar. Wendy Manning, Coca Cola Customer Logistics Vice President, once pointed out that the company can offer a drink within 48 hours from the factory. This is due to local supply, which implies that many drinks are generated in the country in that they are marketed directly. Coca Cola has around 900 bottling operations globally and some of the globes fastest manufacturing lines (Huddar, Kumatagi, and Latte, 2017).

6.0 Sourcing and Procurement

Coca Colas business head office in Atlanta generates and sells syrup for Coca Cola Ventures (CCE) or another bottling associate accountable for the sales of the manufactured goods throughout North America and Canada. The bottling company transports the syrup to a processing facility where it is blended with supplementary ingredients, like clean water and sweets. The bottler then delivers the polished manufactured good to industry associates (Bowers, Petrie, and Holcomb, 2020). With local shipbuilders globally, the Coca Cola Export Corporation (TCCEC) sells the drink in the necessary local markets.

6.1 Supply Chain Logistics

It is part of every supply chain, so Coca logistical Colas skills surely contribute to the success of its supply chain. Here are some of Coca top Colas logistical methods (Frazelle, 2018). More frequent manufactured goods of manufactured goods, i.e., once a week, team meetings throughout the world, closer client manufactured good facilities, Daily contact between major sites, and smooth operations, shared between all supply chain players.

7.0 Supply Chain Coordination and Resilience

These are some aspects that contribute to the supply chain of Coca Cola:

1. Modernization

Coca Cola Firms easily adds advanced types of machinery into its distribution chain. For instance, a business utilizes 3D printing to make drinks in cans and bottles (Siba and Omwenga, 2015).

2. People

The logistics staff of Coca Cola comprises around 100 persons, who assure a safe voyage from manufactured goods to the refrigerator for each bottle.

3. Long Term Retail Associates Relations

In recent decades, Coca Cola has been one of its retail associates most valuable and trusted suppliers. One evidence is that from 1955 the company has grown with McDonalds (Siba and Omwenga, 2015).

4. Management Supplier Relationship Program

Coca Cola Supply Chain Vice President Helen Davis leads supplier innovation days in the United States. At these events, the procurement and advertising agencies of the organization convey the market demands of the company, and the suppliers present their newest technologies. The program also consists of quarterly meetings with major providers to conduct a mutual performance assessment.

5. Strict Control of Quality

Coca Cola maintains high quality manufactured good procedures standards. For example, in the case, Coca Cola HBC, a franchise associate in Coca Cola, wants excellence, environmental and wellbeing certificates from its contractors.

6. Council on the International Supply Chain

The drink giant created the World Supply Chain Council, which consists of subcommittees that emphasize compliance with Coca specified Colas supply chain plan (Chalikias and Skordoulis, 2016). The Board has its portal, where staff and supply chain contributors distribute knowledge and encounters.

7. Close Bottlers Collaboration

Coca Cola offers a uniform set of criteria to all its bottling wholesalers. Consequently, most choices are centralized. The headquarters monitors many of the activities of the bottling associate, such that every bottling associate supplies a Central Office for the relevant geographic region (Chalikias and Skordoulis, 2016). The Bottler Bureau collaborates with the Coca Cola Export Corporations regional headquarters (TCCEC). The bottlers headquarters unites the manufactured good to different sales and distribution facilities around the globe to create a unified supply chain.

8.0Sustainability & CSR

Sustainability and efficiency are always a priority throughout the manufacturing process. Recently CCE developed a new heat and power system at Wakefield manufactured good to plant in the United Kingdom that will save 1.500 tons of CO2 per year. Such innovation can help the corporation cut its carbon footprint since 2007 by 23 percent. Whereas the equipment and machinery of CCE plants are significant to the release and marketing of bottles, its personnel are just as essential (Chalikias and Skordoulis, 2016). 7 days per week, 364 days a year, 166 peoples strong logistics team delivers great day to date operational support to assure the availability on shelf.

It is this squad that monitors every activity and guarantees that everyone gets onto the vans and highways once the bottles are filled. Blockchain is a current example of the use during the Coca Cola supply chain of innovative technology. Coca Cola seeks, as part of the associateship also with technology company SAP, to enhance teamwork, including its associates, and to increase order transparency, and to minimize cost through blockchain machinery. Coca Cola has an IT infrastructure for individual bottlers (Bhardwaj, 2016). For instance, if an associate has a bottleneck, he can buy resources from another associate. With Blockchain, Coca Cola hopes to decrease the period of order settlement from 50 days to not many days.

9.0Comparative Analysis

Supply chain strategies demand a complete system perspective of the connections in the chain which operate effectively together to satisfy customers at the end of delivery. As a result, costs throughout the chain must be minimized by eliminating needless costs and concentrating on providing value. The efficiency of the system needs to be increased, bottlenecks eliminated, and performance assessment focused on full system effectiveness and equal value added distribution in the supply chain. The infrastructure of the supply chain must meet the customers expectations. Since the supply chain of Coca Cola is short life cycling manufactured goods, it is customer centered more than sugar cane. It is thus classified as a value chain (Bhardwaj, 2016). Although the manufactured good supply chain needs to be efficient and cost effective, the stock queue and bulwarks influence are not as critical as a manufactured good for a short life cycle. The value chain outlines the process wherein corporations obtain raw materials by producing, producing, and other operations that provide benefit for generating a finished piece and afterward selling the completed manufactured good to consumers. Although all supply chain participants meet customer needs and consumer pleasure, a value chain is a series of interconnected events utilized by a corporation to generate a viable benefit.

The value chain procedure consists of five steps:

1. Inbound Logistics

Receipt, warehousing, and supply regulator of incoming logistics.

2. Operations

Creating value that transforms inputs into manufactured goods like assembly and manufactured goods.

3. Logistics Outbound

Activities needed to reach a customer with a final manufactured good. These consist of warehousing, management of inventories, fulfillment of orders, and delivery.

4. Advertising and Trades

Actions to get a purchaser to buy a manufactured good.

5. Assistance

Services that sustain and improve a manufactured goods value, such as consumer assistance and guarantee. The supply chain consists of the transition from the multiple manufactured goods and distribution stages of the commodities to the end user of all connections, goods, materials, and money. The idea of the supply chain is based on effective administration. The invention, manufacture, transport, and selling of goods and services at each point in the process section of a firms supply chain. The supply chain consists of all features that a customer application receives and completes. These tasks consist of manufactured good creation, advertising, processes, supply, and financing.

10.0 Reflections

The topic of this report, with the analysis and comparison between two supply chains was an eye opener on the steps that are involved in supply chain and management that are essential in the success of a successful business environment. This time, lessons were very interactive and I paid due diligence to not repeat all my previous errors in which I failed to create a descriptive methodology of the supply chains under question. Also, I could not analyze the said notions in detail. Since I had studied on my own on supply chain management, I was very active by asking questions and reacting to other student’s comments and questions. I felt that I was more settled in the class and had a higher rapport with other students, which I believe would be important for the successful completion of this report. 

Literature review is an essential part of any research, including supply chain management and analysis. During the lessons, I was introduced to the process of reviewing literature review in relation to supply chain management. While literature review was not a new concept to me, I had general knowledge on the area of study. However, during the course, learning literature review that is specific to the concepts of supply chain management was interesting and one of my best classes so far in the course. Based on the course, literature review for supply chain management allows a researcher to investigate existing knowledge and find gaps that can be filled through further study for the betterment of the business sector. During the class, I majorly listened and followed closely the assertions of the lecturer and the contributions of other class members.

I also made sure to give a detailed overview of the procedures and compare supply chains of a somewhat similar origin to signify the differences of a short life cycle product and a commodity, while also bearing in mind the sustainability factors of the two chains.

11.0     References

Asrol, M., Marimin, M., Machfud, M., Yani, M. and Taira, E. (2021). Risk Management for Improving Supply Chain Performance of Sugarcane Agroindustry. Industrial Engineering & Management Systems, 20(1), pp.9–26.

Asrol, M., Marimin, M., Machfud, M., Yani, Moh. and Taira, E. (2020). Supply Chain Fair Profit Allocation Based on Risk and Value Added for Sugarcane Agro industry. Operations and Supply Chain Management: An International Journal, pp.150–165.

Bhardwaj, B.R. (2016). Role of green policy on sustainable supply chain management. Benchmarking: An International Journal, 23(2), pp.456–468.

Bowers, M., Petrie, A., and Holcomb, M. (2020). Unleashing the Potential of Supply Chain Analytics. Journal of Research in Engineering and Applied Sciences, 59(1).

Chalikias, M. and Skordoulis, M. (2016). Implementation of F.W. Lanchester’s combat model in a supply chain in duopoly: the case of Coca Cola and Pepsi in Greece. Operational Research, 17(3), pp.737–745.

Eggleston, G. and Lima, I. (2015). Sustainability Issues and Opportunities in the Sugar and  Sugar Bio manufactured good Industries. Sustainability, 7(9), pp.12209–12235.

Frazelle, E. (2018). Supply chain strategy: unleash the power of business integration to maximize financial, service, and operations performance. New York [U.A.] Mcgraw Hill Education.

Huddar, Y., Kumatagi, P. and Latte, M. (2017). Digital Supply Chain Management A Review Mechatronics View project supply chain management View project Digital Supply Chain Management A Review. International Advanced Research Journal in Science, Engineering and Technology, 4(1).

López Milán, E. and Plà Aragonés, L.M. (2015). Optimization of the Supply Chain Management of Sugarcane in Cuba. Handbook of Operations Research in Agriculture and the Agri Food Industry, pp.107–127.

Morales Chavez, M.M., Sarache, W., Costa, Y. and Soto, J. (2020). Multiobjective stochastic scheduling of upstream operations in a sustainable sugarcane supply chain. Journal of Cleaner Manufactured goodion, 276, p.123305.

Sambrani, V. N. & Pol, N., 2016. IUP Journal of Supply Chain Management. Green Supply Chain Management: A Literature Review, 13(4), pp. 7 16.

Scott, C., Lundgren, H. and Thompson, P. (2018). Guide to Strategy in Supply Chain Management. Guide to Supply Chain Management, pp.129–142.

Siba, M. and Omwenga, J. (2015). SUPPLY CHAIN RISKS MITIGATION STRATEGIES ADOPTED BY MANUFACTURING FIRMS IN KENYA: A CASE OF COCA COLA COMPANY (K). International Academic Journal of Procurement and Supply Chain Management |, 1(4), pp.45–65.