Supply Chain of Cheese Production Samples †MyAssignmenthelp.com

Question: Discuss about the Supply Chain of Cheese Production. Answer: Supply Chain of Cheese in Dairy Industry Australia is one of the best-known countries in the world for dairy farming. A dairy industry, which started at a low rate in the 1978, has grown tremendously due to improved technology and machinery (Nettle, Brightling Hope 2013). Initially, fresh milk was the only produced product from the Australian dairy firms. The demand has been shifting from fresh milk to improved milk products like cheese, yogurt, butter, powder milk and many others. This paper discusses supply chain for cheese which was once a high selling product, but its sale has reduced. Cheese is a fresh or matured daily product that is obtained by draining of whey after the coagulation of casein the major milk protein (Nettle, Brightling Hope 2013). Supply Chain for Cheese The supply chain for cheese production is between two actors that is milk producers and the industries. Initially, before cheese production came up, whey used to be taken as a waste and given to animal as a feed (Nettle, Brightling Hope 2013). Today many industries are using this whey as a material for cheese production. The supply chain starts within the dairy farms, whereby milk from cows gets to the storage tanks available in the farm via pipes. The introduction of this technology has helped farmers to save time in milking and thus increasing productivity and efficiency. The milk is kept in the tanks that are regulated to temperatures of not more than 40 degrees and should not also stay in the tanks for more than 48 hours (Nettle, Brightling Hope 2013). From the farm, tanker trucks pick up the tanks and transport them to the processing industries. The milk has to be tested to be bacteria free and if it is well chilled. When these two factors are tested and found satisfactory, the milk proceeds for processing. The milk then undergoes acidification and coagulation to produce curds and whey that are cut into pieces, salted and allowed to ripen. Ripening is the last before the packaging and finally the distribution to various market stores for sale (Nettle, Brightling Hope 2013). Within this supply chain, there are several stakeholders and members who have key roles in which they play to ensure maximum productivity. The entire network entity of different stakeholders should work either dependently or independently to ensure satisfaction of same consumers (Gualarandris et al. 2015). The following is a list of stakeholders or members within a supply chain and the role they play to ensure customer satisfaction (Gualarandris et al. 2015). Stakeholder Role played Vendors (dairy farmers). They supply the raw material needed; these are dairy farms. Producers( Processors) They convert the raw material into final products. They carry out the entire processing of the product. Creditors They are able to lend loans to the farmers and the manufacturing company, thus ensuring a swift flow of the business. Distribution centres They help deliver the product to the retailers, the product is supplied to them, and now retailers can pick there at wholesale prices. Retailers They make product available to the final consumers at various estate shops or even supermarkets Consumers They are final users of the products, without consumers then the whole chain is non-profitable. The current supply chain for cheese production is efficient as it helps to ensure maximum satisfaction to the final user. As from the chain, it is evident that the chain is not only limited to the internal organization of the company, but also to external and even to the consumers. Feedbacks are able to be handed in from the consumers through the various members and finally to the company, making it very effective. Challenges, Strengths, and Threats for of the Supply Chain The supply chain for the production of cheese just like any other daily product's supply chain has a lot of challenges. First, there is a problem with legislative. Milk is a product that is subject to temperature and cleanliness testing, and the conditions are increasingly becoming tough from the legislatures (Yue et al. 2014). This makes the supply chain be complex. Secondly, ensuring that the milk moves rapidly from the farms to the processing companies is usually a complicated undertaking. This is because most of this transportation is done by trucks which may then end delaying causing damage to milk which usually has a high risk of spoilage and expiration. Thirdly, most farmers are usually affected with low production during some seasons; this makes it hard for the production of cheese as it strongly depends on milk as the raw material. Apart from these challenges, the supply chain has some advantages. To mention few of them, the supply chain is able to optimise general performan ce, minimise on wastes and costs, ensures effective visibility and transparency (Yue et al. 2014). Recommendations for Improvement of the Current Supply Chain The current supply chain for cheese production is effective although there some adjustments that have to be made to make it more efficient. The adjustments to be made on it are important as they will help the supply chain give maximum satisfaction to the consumers. Introduce mandatory pricing which will help enhance the transparency of the product price from the company to the distributors and finally to consumers (Lyn Tseng 2016). A forum for communication has to be created which will help the company get feedbacks from the final consumers of the products. Assessment needs to be incorporated in the chain to facilitate any improvement that has to be made on the product (Lyn Tseng 2016). The assessment will be done by an effective flow of information from the consumers, buyers, and sellers of the products at different destinations of supply. Companies should also incorporate in their supply chain an appropriate way of handling farmers and their supply. This will help ensure a consta nt flow of the raw materials. The advantages that are associated with supply chain can be leveraged to ensure maximum productivity. For instance, the supply chain is able to effectively increase the transparency and visibility in every sector. From the procurement to the processing and to pricing will help facilitate smooth flow and satisfaction to the consumers (Yue et al. 2014). Waste and losses are mostly experienced during production and even distribution, proper supply chain and implementation of the above recommendations will help in reduction of the losses. Challenges that are faced by these supply chain has to be addressed as well; for instance, insufficient supply of raw materials can be solved by the company engaging themselves to support farmers. Companies should be able to facilitate loans to farmers and proper education on the productivity of the raw materials. Transportation services for the delivering of raw materials together with the final product have to be improved; this will reduce the transportation cost and thus increasing the profit margin. Companies should be well prepared to follow the legislative rules that are set for them. Failure to do this may lead to the total closure of the companies and thus great loss (Yue et al. 2014). The company needs to develop ways in which they can handle the threats. For instance, threats that are associated with the supply chain for cheese are competitors and single sourcing of some companies. Competition is real, and so every company has to work to ensure that it produces a product that can stand out the competitors. Different suppliers need to be engaged to help solve the shortage problems. Conclusion A supply chain is an important tool in the production industries. It gives the direction in which production has to take place, from the supply of the raw material to processing, distribution and finally consumption by the consumers. References Gualandris, J., Klassen, R.D., Vachon, S. and Kalchschmidt, M., 2015. Sustainable evaluation and verification in supply chains: Aligning and leveraging accountability to stakeholders. Journal of Operations Management, 38, pp.1-13. Lin, Y.H., and Tseng, M.L., 2016. Assessing the competitive priorities within sustainable supply chain management under uncertainty. Journal of Cleaner Production, 112, pp.2133-2144. Nettle, R., Brightling, P., and Hope, A., 2013. How program teams progress agricultural innovation in the Australian dairy industry. The Journal of Agricultural Education and Extension, 19(3), pp.271-290. Yue, D., You, F. and Snyder, S.W., 2014. Biomass-to-bioenergy and biofuel supply chain optimization: overview, key issues, and challenges. Computers Chemical Engineering, 66, pp.36-56.