Supply chain mapping- Potato Chips

Logistics
University of Minho
2023/2024

Inês Santos A99456

Bárbara Ferreira A90116
Beatriz Alves A99396
Pedro Costa A96593
International Business Bachelor Students

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 1. Consider a product that you own, or use, or consume.
2. Describe its supply chains (by representing it schematically and adding a brief
legend) as you know or imagine it, 1) going as far upstream as possible to raw
materials, 2) giving detail about the distribution channels, and 3) including
reverse logistics.

3. What do you imagine are the key challenges in the planning and operation of
these supply chains? (We are looking for operational challenges: those related
with getting the product to the consumers; do not forget to also mention
challenges related with ethics, responsibility and sustainability)
The main challenges in the operation and planning of the upstream supply
chain are related to stock management and the ability to preserve the product,
since the potatoes must be kept exposed to natural ventilation, with storage
areas protected from the sun and wind, which favor air circulation at room
temperature, in addition to the recommended use of refrigeration, which
should be stored at a temperature of 10°C. Also, we need to have the ability to
make estimates as close to reality as possible, allowing future demand to be
determined. These are some of the key factors to have a good supply chain
planning.
As far as packaging is concerned, the focus is on making it as sustainable as
possible. Our idea is to recycle previously used packages and thus create new
packaging that is as compact and attractive as possible.
At the focal company we are also faced with the challenge of sustainability.
We try to purchase machinery that pollutes as little as possible and that
guarantees the best quality for our products.
Downstream, the main challenges we encounter are related to distribution,
where the aim is to maximize the operation of commercial routes and delivery

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 times in order to be as efficient as possible, ensuring that the product arrives in
perfect condition.
The main objectives of a supply chain are to efficiently and effectively
manage the flow of goods, services, information, and finances from the raw
material suppliers to the end customers while minimizing costs and maximizing
customer satisfaction, but in real life it's not always possible to verify these
events and since we're dealing with a volatile market organising the supply
chain isn't easy, due to this volatility in the potato chips market there can be
phases of peak sales (examples: the premiere of a film that
encourages/publicises the consumption of potato chips or a less balanced
dietary intake) or phases of a lower number of sales (examples: news about the
harm of consuming potato chips).
In addition to this, there are some challenges related to the lack of
qualified labor to carry out the tasks in order to achieve the highest possible
productivity, which is due to the lack of labor with the right skills or availability,
which is also a reason that can lead to difficulties in delivering the product to
consumers also the lack of demand, due to consumer disinterest or lack of
innovation (e.g. different flavors of crisps, strong competition) can also
sometimes be a factor in the difficulty in selling the product.

4. What kind of slacks are there in the specific supply chain you are considering
(and what is their purpose) and at what supply chain stage or member are
they located?
Existem várias folgas que podemos associar à cadeia de abastecimento das
batatas fritas. Começamos por mencionar que logo na plantação de batatas
uma das principais folgas existentes poderá ser a meteorologia, nomeadamente
fenómenos atmosféricos que prejudiquem o solo ou até o danifiquem; sendo
benéfico para os produtores terem um stock mais elevado do produto para
prevenir futuros imprevistos ou até como forma de conseguir dar resposta às
necessidades dos consumidores. Contudo, esse stock não deve ser demasiado
elevado uma vez que o produto tem um ciclo de vida curto, em que após o
mesmo, se não for utilizada, é um prejudicial para a empresa.
Para além disto a mão de obra que é necessária em várias etapas da cadeia de
abastecimento, desde o cultivo até a produção poderá ser considerada uma
folga no que diz respeito à sua disponibilidade e qualificação dos trabalhadores,
uma vez que caso não tenham as aptidões e a disponibilidade certas pode
prejudicar o produto, sendo necessário ter em stock.
A falta de disponibilidade ou flutuações nos preços dos bens essenciais também
é considerada uma folga, uma vez que como o óleo para fritar ou sal, pode
impactar a produção, é então necessário deter um stock.

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References list:
Lourenço, J. (2014). Título do Documento. Repositório Científico de Acesso Aberto de
Portugal. Recuperado de https://comum.rcaap.pt/bitstream/10400.26/16997/1/Jo
%C3%A3o_Louren%C3%A7o_21223004_MEAL_Relat%C3%B3rio_2014.pdf
PUC-Rio. (Ano). Título do Documento. Maxwell. Recuperado de
https://www.maxwell.vrac.puc-rio.br/11025/11025_3.PDF
Potato Business Dossier. (2023). Título do Artigo. Potato Business. Recuperado de
https://www.potatobusiness.com/dossier/2023-3/

 Some information based on ChatGPT and the document 'Concepts of: logistics,
supply chain (SC) and supply chain management (SCM)', PDF do professor
Nazaré Rego.