Operations Management: Creating Value Along the Supply Chain, 7th Edition

Chapter 11. Global Supply Chain Procurement and Distribution

In this chapter, you will learn about . . .

• Procurement

• E-Procurement

• Distribution

• Transportation

• The Global Supply Chain

Web resources for this chapter include

• Internet Exercises

• Online Practice Quizzes

• Lecture Slides in PowerPoint

• Virtual Tours

• Company and Resource Weblinks

www.wiley.com/college/russell

Global Supply Chain Procurement and Distribution AT HERSHEY'S

Hershey's global supply chain starts in the jungles of countries like Brazil, Indonesia, the Ivory Coast, and Ghana, where the cacao tree grows. The cacao tree's melon-like fruit is harvested by hand and inside the fruit are about 20 to 40 seeds, or cocoa beans. These beans ferment in large piles for about a week and are then dried. The beans are used to produce cocoa products including cocoa liquor, cocoa butter, and cocoa powder, which are the most significant raw materials Hershey's uses to produce its chocolate products. Hershey's purchases these cocoa products directly from third-party suppliers that source cocoa beans in Far Eastern, West African, and South American equatorial regions. West African accounts for approximately 70% of the world's supply of cocoa beans. Hershey's also procures other raw materials like milk, sugar, and nut products from suppliers in the United States and around the world. Hershey's primary manufacturing and distribution facilities are in ...