Tea Case
1. Flow of products and information within Tehindo’s supply chain
Distribution Facilities
There are three key players in Tehindo’s supply chain: the tea leaves suppliers, ten factories across Indonesia and the distributions facilities, which includes sales center, distributors, wholesalers, retailers.
- Tehindo corporate organization owns a total of over 1500 hectares of tea plantations in West Java.
- Ten manufacturing plants are spread across three island in Indonesia: Sumatera, Java and Bali.
- Tehindo use 4 types of channel to distribute their tea products.
Beside the flow of product downstream the supply chain, Tehindo has to manage the upstream flow of empty bottles. The glass bottles are sent back to the factories for reuse in new products. With many players in the supply chain as well as two flows of products, Tehindo supply chain appears to be very complicated. As a result, a miscommunication of information between the key players can cause a disruption in the whole supply chain. 2. The challenges facing bottled Goteh and Fteh products:
a. Goteh’s challenges:
Firstly, Goteh has only few product variants, which makes it easier to forecast in comparison to Fteh. There is only one flavor of jasmine tea with three different styles of packaging. With only one flavor, Goteh outperforms Fteh in terms of sales volume.
Secondly, according to the information given, Goteh is mainly sold through the traditional market, which are small grocery stores. One advantages from this practice is that it is not affected by the promotions from wholesalers and retailers in the supply chain that can cause fluctuations. However, due to the nature of small grocery stores, the transparency of demand information can be very limited. Getting demand information from these small grocery stores can be more challenging than from the wholesalers or retailers.
Lastly, most of Goteh products are RGB, return glass bottle. Empty glass bottles are sent back to the factories,
Distribution Facilities
There are three key players in Tehindo’s supply chain: the tea leaves suppliers, ten factories across Indonesia and the distributions facilities, which includes sales center, distributors, wholesalers, retailers.
- Tehindo corporate organization owns a total of over 1500 hectares of tea plantations in West Java.
- Ten manufacturing plants are spread across three island in Indonesia: Sumatera, Java and Bali.
- Tehindo use 4 types of channel to distribute their tea products.
Beside the flow of product downstream the supply chain, Tehindo has to manage the upstream flow of empty bottles. The glass bottles are sent back to the factories for reuse in new products. With many players in the supply chain as well as two flows of products, Tehindo supply chain appears to be very complicated. As a result, a miscommunication of information between the key players can cause a disruption in the whole supply chain. 2. The challenges facing bottled Goteh and Fteh products:
a. Goteh’s challenges:
Firstly, Goteh has only few product variants, which makes it easier to forecast in comparison to Fteh. There is only one flavor of jasmine tea with three different styles of packaging. With only one flavor, Goteh outperforms Fteh in terms of sales volume.
Secondly, according to the information given, Goteh is mainly sold through the traditional market, which are small grocery stores. One advantages from this practice is that it is not affected by the promotions from wholesalers and retailers in the supply chain that can cause fluctuations. However, due to the nature of small grocery stores, the transparency of demand information can be very limited. Getting demand information from these small grocery stores can be more challenging than from the wholesalers or retailers.
Lastly, most of Goteh products are RGB, return glass bottle. Empty glass bottles are sent back to the factories,