“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