Weaknesses in the Product Life Cycle
There are a couple of weaknesses in the product life cycle of Hershey. To begin with, candy sales are being lowered by health and wellness trends, which are not only a weakness for Hershey, but the entire chocolate and candy industries as a whole. In addition to that, Hershey has had price inflation for their products.
There has been an increase in consumer consciousness when it comes to the health risks related to foods with high sugar and salt products as well as high-fat and cholesterol foods. Consumers are giving more attention to the product labels of the items they purchase and are choosing to purchase the healthiest ...view middle of the document...
Key Components of Supply Chain Management
In the past, and environmental conscience and sustainability were seen as marginal interests important only to a small subset of consumers and organizations and consumers. Today, eco-friendliness has come to be main-stream. Consumers are ever more insistent that the companies they shop at put into operation green ways.
That being said, a key component of Hershey’s supply chain management strategies has become sustainability. Product sourcing, transportation logistics, and a multitude of other factors have to be held into account. This type of effort is even being made by extremely large companies that have intricate supply chains. Hershey made an announcement a short time ago that they are making a commitment and guaranteeing that by the close of 2014, all of the palm oil it acquires from suppliers is sustainably traceable and sourced (Genco, 2013).
Hershey’s has also indicated that they formed a new set of requisites for their suppliers of palm oil. Along with conforming to local laws, Hershey's partners are not allowed to take part in any deforestation and peat land expansion. Competitors of Hershey could find that they will need to boost their own sustainable practices if they want to keep up.
One major issue with Hershey’s supply chain management is the sourcing of palm oil. Worldwide, the expansion of the palm oil sector has been shocking. In the last five years this sector has surpassed soybean oil as the World’s biggest edible oil produced. Presently, 85 percent of the earth’s palm oil exports originate from Malaysia and Indonesia. China, Indonesia, India, and are main consumers of palm oil and the U.S. is only importing between two to four percent of the world’s production (Boyle, 2014).
A huge international company like Hershey is at times three to four supplier tiers away from the source point. Now while it is vastly simple to recognize the sustainability problems surrounding deforestation in the sector of palm oil, it is not as easy to figure them out from a lone organization’s perspective. This is particularly factual for Hershey since they are a small buyer of palm oil.
To help with this sort of issue, Hershey will need an added layer of translucence from their palm oil suppliers. Doing this will require the suppliers to pinpoint their palm oil sources with whom The Hershey Company may possibly not unswervingly conduct business with. Furthermore, this will also permit Hershey to figure out where its palm oil is sourced regionally. Particularly, Hershey will obligate their suppliers to autonomously confirm that their own supply chain does not add to the destruction or deforestation of wildlife habitat; contribute to peat land expansion, or clear high carbon stock forests (Boyle, 2014). The Hershey Company will also need to obligate their suppliers to function in accordance to local regulations and laws, which would include human rights and labor laws.
With this, Hershey...