A short supply chain refers to the shrinking of the supply chain. In the original business plan submitted for Kirin, it is identified that syrup production leads to distribution and end customer shipment. Now, what if the geographic zone for distribution is large? For instance, a distribution truck for one simple geographic zone might run for say x miles, consuming y amount of energy and producing z amount in carbon emissions. Now when the geographic region is larger by say 50 percentiles, then the same truck will cover x+50 miles, consuming y+50 amount of energy and producing z+50 amount in carbon emissions. The larger this chain, the lesser the sustainability as energy will be wasted and more carbon emissions will be produced. Now if the supply chains were to be reduced by having more production, these values will go down. Internationally, instead of Kirin shipping end product, it could identify strategic partners in the foreign locations and share the syrup formulae or even the syrup and have them manufacture and sell the product. This way the amount of energy and carbon emissions will be vastly reduced. This can also be applied as a local strategy.
Kirin is a beverages company that is invested in logistics and engineering units for handling their operations as well. They are also well established in the restaurant and the real estate business. The Kirin business process integrates the R&D, Marketing and supply chains. R&D focuses on unique and cutting-edge solutions in fermentation technologies and biotechnology applications. Marketing focuses on understanding consumer needs. Supply chains focusing on sustainability will help the company reduce energy usage.
To reduce the fuel use in distribution by around 50 percent and more by identifying strategic partners in international distribution.
RECOMMENDATIONS AND STRATEGIES
Short supply chains will be identified in the future and thus international distribution related costs and energy use will be lessened.
In the distribution segment, the focus will be on creating shorter and sustainable supply chains. The more the beverage has to travel to reach the consumer, the more the costs associated with it. Transporting syrup or even sharing formulae for the syrup with partners in foreign nations could help in reducing costs and fuel used in transportation.
The shorter the supply chain, the more the company will move up in its attempt to become a world leader in sustainability
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