Tehindo Tea Case Study

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Overview of the Case Thlndo tea began as a small home-operated business in Indonesia in the 1940s. In the mid-1970s, it opened its first factory in Jakarta, producing a novelty for the time ready-to-drink bottles of tea. The combination of the new product and location significantly improved the company's business. Currently, the organization produces three times of tea produces: 1) JTea a jasmine tea in glass bottles or packs; 2) Fruiti0 a tea packaged in either bottles, cans or packs, and 3) CTeh a dried, chopped and ready to boil tea leaf in bags. While the company has been successful, and certainly has grown, they have also had to contend with pressures from competitive markets, soft drinks (Snapple, sodas, etc.) and market demand. Their price increases, in fact, do not really reflect consumption, but instead more hard costs. This tends to make the pricing to the retailer variable, causing the retailer to hold larger inventories when the price is low and in preparation of Holidays. Overview Supply Chain Management Management of supply chains is a critical aspect of any business venture, particularly now in the global era where suppliers may be thousands of miles away. Briefly, supply chain management is the manner in which forms the production and distribution of appropriate goods and services to the business and then then end-user. It involves both retail and manufacturing, raw materials, work in progress inventory, and then consumption. The process is complex depending

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