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Case Study Of United Biscuits

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United Biscuits is a British multinational food manufacturer of biscuits including brands such as Jacobs Cream Crackers, and Twiglets and a leader in green sustainability. This aim of this report is to analyse their green sustainability strategy and how it relates to the enhancement of their triple bottom line.

In this report I will examine their current supply chain strategy and goals with specific reference to the operational improvements they have made in each facet of their supply chain network, critically analyse its effectiveness on achieving their goals, address the challenges they face in the sustainability model and finally provide workable recommendations on how they can improve their model in the future.

The report will conclude …show more content…

What this might mean is that although their green initiative has shown a positive effect on their environmental bottom line, this has not spilt over into their financial bottom line. There is certainly a dilemma between reducing environmental impact of business activities and increasing financial cost (McIntyre et al, 1998). This might be because the efficiencies in their supply chain are not reflected in the price of their goods market their green supply chain effectively. Finally this could be because United Biscuits have chosen to adopt a long term view to their green strategy and an outcome of a long term strategy is a short term reduction in profits due to increased investment. This view is supported by (Abbasi, Nilsson, 2012,pg 517-530) when they propose …show more content…

An increase in inventory is likely to lead to an increase in the cost of managing the goods and also waste output due to the fact that some of their goods might perish if stored for too long.

Sourcing
With the adoption of the SEDEX system, United Biscuits has raised the ethical standards of its suppliers ensuring that they are in alignment with their overall sustainability strategy.
The trade-off however is a reduction in the pool of suppliers and also an increase in cost due to the fact that the suppliers might have to increase the price of their goods in order to stay competitive. The use of direct sourcing agreements also increases the time and cost of finding and managing new suppliers.

Transport
The recent innovations of using waste oils as an alternative to fuel , optimising product pack and pallet fill to maximise load and also using canal transport instead of lorries in Belgium is a cost saving and energy efficient strategy. However the trade-off is that it reduces the frequency at which shipments can be made, which might result in a longer consolidation period and a reduction in inventory turnover, which leads to added

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