Sunrise Coffee Llc - Value Chain Design
Autor: chrisle01 • February 5, 2014 • Case Study • 1,211 Words (5 Pages) • 1,224 Views
Introduction
Sunrise Coffee LLC is a company located in Vietnam, which produce fresh organic coffee bean at low price but high quality. Sunrise is attempting to engage into contract with Java Coffee and Tea Company to supply coffee bean. In the future, Sunrise is looking forward to contract with other Coffee Chains, and smaller Coffee businesses to expand its business around the United State. This paper will focus more on Sunrise’s value chain, which includes the flow of goods, information and financial transaction.
About the Vietnam coffee industry
Vietnam is one of the World's Coffee suppliers leaders. Nowadays, Vietnam is putting itself to fair wages, to healthy coffee, and to care for the environment. Vietnam is best known in the world for shade grown coffee, fair trade coffee, and organic coffee. Sunrise LLC is heavily involved in Fair Trade coffee, which we will buy coffee from farmer and guarantee them a good price. This Fair Trade coffee is not only helps us the companies to obtain good quality of coffee bean, but also helps to increase the income of local Vietnamese farmers. (Vietnamesecoffee, 2012)
About Sunrise’s product
Sunrise main product is to offer its buyers organic coffee as the demand for organic product around the world is increasing. Organic coffee is grown using methods and materials that have a low impact on the environment. In order for coffee to be certified and sold as organic in the United States, the coffee must be produced in accordance with U.S. standards for organic production and certified by an agency accredited by the U.S. Department of Agriculture (Ota, 2009). Sunrise is ensuring that our coffee quality will meet with U.S. organic standard.
Flow of goods
• Inbound logistic: the inbound activities included receiving raw coffee bean, warehousing, and inventory control (quickmba, 2009-2010). Sunrise LLC is getting its coffee from Buon Ma Thuot, the capital of Vietnam coffee, where people live and producing coffee the most across the country. Sunrise will have a team of coffee expert, who will come down to Buot Ma Thuot, test for quality and buy coffee directly from farmers. From Buon Ma Thuot, the farmers are responsible to perform the preliminary drying processes. The Coffee is packed and transport to Vung Tau city where Sunrise warehouse is located, and get ready for export abroad. (rainforest-alliance, 2012). For inventory control purpose, Sunrise will usually buy more than 20% of the Java’s order; since coffee bean is very easy to ruin if storage temperature and condition is not right. On the safe side we want to have back up and replacement for some coffee pack that is under qualification of U.S. standard. Also, besides our main suppliers, we also keep in good relation with other small farmers, who can produce the same kind of
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