Tuesday, February 19, 2013

“Greener” Chocolate From Hershey’s

Last October, Hershey Company announced its intention to use cocoa beans from Rainforest Alliance Certified farms in 100% of its products by 2020.1 As Hershey’s business expansion into emerging markets such as BRIC countries, the company is ready to transform its supply chain system to make it more efficient, flexible and sustainable.
As a part of the ambitious supply chain transformation plan, a three-year program has already been put on table after Valentine’s Day on February 15, which has focuses on:

1. Significantly increase manufacturing capacity utilization by reducing the number of production lines by more than one-third
2. Outsource production of low value-added items
3. Construct a flexible, cost-effective production facility in Monterrey, Mexico to meet current and emerging marketplace needs.2

Recent years have witnessed many companies like Hershey’s who are dedicated to working towards a green and sustainable supply chain. Through the transformation process, companies are expected to implement a more effective and efficient supply chain while maintaining environmental and social consciousness. However, so far rare successful transformation has been recorded as both eco- and cost-friendly. It seems to be a real test of the supply chain management for all companies engaged in the greening projects.

[1]. http://bx.businessweek.com/supply-chain-performance/view?url=http%3A%2F%2Fblog.apptricity.com%2Fbid%2F267836%2FSupply-Chain-Management-Hershey-Promises-Green-Chocolate-by-2020
[2]. http://www.thehersheycompany.com/newsroom/news-release.aspx?id=963574

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