Supply chain management - Essay Example

To achieve this objective, there is a need of an organization to have an efficient supply chain that will make it possible for the organization to supply their products without passing on the extra costs of supply to their customers. In achieving this objective, the organization under consideration will manage to obtain a competitive advantage over its competitors. However, this is not the case, and it is because there are a variety of factors that determine the supply chain of a product. Some of these factors are beyond the control of business organizations (Lee and Lee, 2007).

This is because they are influenced by the environmental conditions. This research paper is an examination of the global supply chain of coffee. It is important to denote that coffee is an important product, that is traded worldwide, and the balance of trade in regard to coffee production and manufacturing, is in favor of the developed countries, as opposed to the developing countries (Lindgreen and Maon, 2013). Coffee is one of the major sources of revenue for less developed countries, and it is always grown on large scale, for purposes of exportation.

On this basis, coffee is a very valuable crop in less developed countries, since it is a source of livelihood. In analyzing the global supply chain of coffee, this paper will identify the power in which different actors in this supply chain hold in the market. It is important to denote that most production of coffee emanates from the third world countries, while the manufacturers of this coffee, popularly referred to as roasters are found in the first world countries. Global trade in coffee has been made possible because of the international liberalization of trade.

Liberalization of trade involves reducing international barriers to trade in services and goods (Sherer, 2005). This principle is based on the concept that a market works better and most efficiently when competition existing in it, is less regulated. It is important to