The Chain of Supply of Chocolate - Coursework Example

The Chain of Supply of Chocolate This paper will analyze a cup of hot chocolate and the chain of supply involved in the same to the end product all through those processes and the chain of supply across the globe. The paper will analyze and discuss alternative ways of production of chocolate, then analyze the similarities and differences between the chocolate chain and that of chocolate or tea from a different location. It will go further to discuss the use of chocolate to the human health, the materials or rather the components used in the production of the same and so on. Manufacturing, marketing, and finally, distributing of any product to be consumed worldwide calls for proper and systematic planning in order to reach its destination. It is the same issue with chocolate from the farm as cocoa to the factory to be processed and mixed with other components like sugar and at times milk before it is packaged and supplied through a systematic chain across the world. Cocoa is grown, harvested and taken to the industry to be used in making chocolate bars and chocolate that is significant in the cooking of the cup of chocolate in question. Besides cocoa beans, other raw materials for the chocolate industry include milk, sugar, wrapping materials/packaging materials like card, paper and foil. Another basic input is the premise, the equipment and the plant that are needed for manufacturing and distributing. They include premises of the factory, complex machines, and fleets of distributing trucks. All this items are referred to as capital. There are various issues involved in the supply chain of chocolate. For instance, Nestle, which is a leading producer of chocolate, has a close involvement with the chain of supply in order to ensure that there is fairness and quality is not compromised. The company is involved in examining potential problems of child labour, forced, on West African cocoa farms. It is done on the basis of the cocoa industry in consultation with labour organizations, governments, and Non Governmental Organizations and other members of the chocolate industry and the cocoa industry too. There is a close monitoring to ensure that farmers and farm owners do not resort to child labour as a cheaper means of recruiting workers in cocoa farms. The Nestle Company for instance ensures that laboring of children is not attached in any way to their supply facilities and makes sure that they reject suppliers in the industry who incorporate child labour in the chain of production and supply. The table below shows the chain of production of cocoa. Source: Jennings, 2006, Business ethics: Case studies and selected readings From the table, one can deduce that there is a systematic organization in the way the chain of production is planned. The primary stage has small farmers of cocoa, the chain moves to manufacturers in the secondary stage then distributors, retailers like shops, garages, cafes, transport of the cocoa, staorage of the same and some other intermediary services. The chain of supply is basically the sequenceof processes and activities required to convert components and raw materials into consumer services and consumer goods. For cocoa, there is a complex chain that varies from country to country. However, a more general or typical supply pattern would pass through the below stages. Primary producers The first stage is the growing of the cocoa beans. Most at times, the farmers involved put up some distance from the market place. Therefore, they depend on individuals operating in the tertiary or in the economy service sector to collect, buy, and transport the beans to the warehouse. For instance, in an exporting country like Cote De Ivoire, warehouses for export are located near or adjacent to the main ports of the country. The two main ports include Abidjan, the capital city, and San Pedro. This is a stage that Nestle, among other companies, play a significant role in the chain of supply by checking the all consignments are occupied with quality cocoa. Nestle may have a chance of buying directly from a warehouse for export, or it may involve intermediary suppliers who purchase bulky cocoa beans from across the globe and plan for shipment to the confectionary manufacturers (Wentk. P. 112). Secondary stage This stage of production is for the companies that manufacture. This is when the cocoa beans have reached the companies in readiness for production. They synthesize cocoa, sugar and other raw materials required in the manufacture of products of chocolate. The cocoa beans are converted into bars of chocolate and other finished products like the component of a cup of chocolate. Tertiary stage This is the final stage in the chain of production is retailing or selling to final consumers. The same way Nestle buys coca in bulk from suppliers and exporters, retailers purchase in bulk from the company and supply the final consumable products. Every chocolate bar, Kit Kat or any other products of chocolate bought from the company, the wholesalers, or the retailers must pass through all the aforementioned stages of production before getting to the consumers. The production of chocolate The production of the wrappings is done in a different place and brought to Nestle for packaging purposes. The content of the packages was produced in Switzerland where the company is located. The location of the company is due to the person who came up with the idea of the same and named it after himself, Nestle (Jennings, P. 96). The process of production involves: cleaning: to ensure that materials such like stones and sticks are removed Winnowing: the company cracks open shells, isolates beans, collects them and heats them. Roasting: the beans are put in furnaces for roasting at temperatures between 100ºc 150ºc for at least 20 and at most 50 minutes. This process releases the cocoa’s full aroma and flavor. Grinding: This stage breaks down the butter of the cocoa on the beans and produces cocoa paste which is a smooth liquid. Blending: varieties of the paste are combined to make sure that the final product is consistent and to determine the quality, the flavor and hardness of the specific final chocolate products (Jennings, 128). From the blending stage the manufacturer goes through different paths to either produce cocoa butter, which is used in pastries, chocolate drinks, ice creams and desserts, or solid chocolate. Since cocoa powder needs a lot of fat content, the produced paste is pressed to remove a great percentage of the cocoa butter. From that stage, it is crushed, pulverized and sieved finely. Making of solid chocolate requires combination of four basic constituents: cocoa paste, sugar, milk and cocoa butter (Wentk, P. 78). The mixture highly depends on the type of chocolate that is produced. Other steps involved in the production to ensure quality chocolates are produced include refining, with an intention of reducing the size of the chocolate particles, conching or stirring to produce a glossy and smooth chocolate paste, tempering or heating at 450 C to smoothen the end product more, and finally moulding it into desired shape before packaging. This production advantage is referred to as technical economy of scale. Through the production of large quantities of chocolate at low costs per every unit, Nestle, among other companies is able to make enough cash from the offer made to consumers that has value for their money. The company pays its staff wholesome salaries because of the trust it has acquired from the production and supply of its products worldwide (Jennings, P. 25). In conclusion, before a product gets to the table of a consumer just like a cup of chocolate, it passes through various stages of production, transportation, packaging and distribution. This calls for proper planning and coordination between or among all the parties involved in the chain of production and distribution. Nestle as a chocolate company liaises with farmers of cocoa in West Africa or at times gets raw materials from suppliers who buy them from there. The main producer of coca is Ivory Coast, while the biggest producer of cocoa products like chocolate is Nestle. The same channel is what the hot cup of coffee passed through before reaching to the consumer. The keenness and proper planning and coordination in the chocolate production industry has plays a great role in satisfying the consumers. Works Cited Jennings, M. (2006). Business ethics: Case studies and selected readings. Mason, Ohio: Thomson/South-Western. Wentk, Richard. Cocoa. Indianapolis, IN: Wiley, 2010. Internet resource. Read More