Supply Chain Management in Tehindo Tea Manufacturing Company Case Study

Supply Chain Management in Tehindo Tea Manufacturing Company - Case Study Example The company has implemented a vertical integration model where a company within the Tehindo Corporate Organization supplies tea leaves, one of the main raw materials of producing their products especially the fruity tea. The company has big parts of land, which they grow tea thus supplying over eleven sale centers with various sales offices in Indonesia. Integrating the supplier’s actions on its own has become unachievable by several companies given the need for the company to minimize inventories and be able to deliver customers’ demands on time. This has been very helpful to the company since they have been able to concentrate more on the production and distribution sections of the company. The other responsibility of the manufacturers is ensuring that the products are safe at the design stage, where they can eliminate the hazards and any potential misuse in this stage. On the other hand, the manufacturer receives the raw materials from the suppliers and produces good s as per the market segment and those products that will satisfy the consumer needs. In addition, the manufacturers sometimes when they sell their goods direct to the consumers that they tend to control the prices of their products. The manufacturer also receives information from the distributors, wholesalers, and retailers about the products sales thus it becomes helpful in forecasting or making a decision of which product to invest more.The company has implemented a vertical integration model where a company within the Tehindo Corporate Organization supplies tea leaves