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Kinesiska skolmjölksprogrammet – Förutsättningar för en framtida leverantör

Hellström, Björn and Janukiewicz, Jakob (2009) MIO920
Production Management
Abstract
Oatly is a company that produces and sells oat based products. Their
most selling product is the oat drink, which is a substitute to milk,
and over 80 percent of the annual sales volume comes from this
product. Since the foundation of Oatly, the main idea has been to sell
their products on markets with low milk availability and milk
consumption. Most recently, Oatly identified the Chinese market as a
way of expanding their business. There has not been any long and
widespread consumption of milk in China, but this is about to
change. The last couple of years, the increasing wealth of the Chinese
people and the positive health effects from milk, have lead to a
dramatic increase in the consumption of milk in the country. The
supply... (More)
Oatly is a company that produces and sells oat based products. Their
most selling product is the oat drink, which is a substitute to milk,
and over 80 percent of the annual sales volume comes from this
product. Since the foundation of Oatly, the main idea has been to sell
their products on markets with low milk availability and milk
consumption. Most recently, Oatly identified the Chinese market as a
way of expanding their business. There has not been any long and
widespread consumption of milk in China, but this is about to
change. The last couple of years, the increasing wealth of the Chinese
people and the positive health effects from milk, have lead to a
dramatic increase in the consumption of milk in the country. The
supply of the milk cannot meet the high demands from the market,
which is why Oatly now see great potential for their products. Most
of the Chinese people are also lactose intolerant, which makes them
sensitive to milk. This also contributes to why Oatly see potential in
their products, which are lactose free.
As a first step, Oatly plans on joining the Chinese School Milk
Program (SMP), which is a program run by the Chinese government.
The purpose of the program is to improve the health of the Chinese
people by providing children with milk in schools, and to develop the
milk industry in the country.
Oatly has to identify and map the processes of the SMP to be able to
expand on the Chinese market. This process mapping is thereafter
used to design the future supply chain.
Purpose: The purpose of this thesis is to map the processes within the SMP,
and investigate how these processes affect a supplier’s design of its
supply chain.
Methodology: The research has been conducted as a case study, with an explorative
and a descriptive purpose. The primary data has been gathered by
interviewing people involved in the SMP in China, and people from
Oatly’s organization in Landskrona. The secondary data has been
gathered by reading books, articles, internet publications and inhouse
documents.
Conclusion: Oatly’s supply chain should be cost minimizing, because of the
processes of SMP and their effects on the supply chain. Oatly should
design their supply chain so that it is physically efficient and stabile,
rather than being market responsive and flexible. One of the main
reasons for this, is that products within the SMP have to be sold at a
price 25-30 percent lower than the regular market price, and that the
demand of the school milk is relative stable which makes it easy to
predict the demand. The production should be directed by actual
customer orders, which is done be having the customer order point
in the beginning of the supply chain. The main reason for this, is that
customer orders arrive a long time ahead, which makes it
unnecessary to produce anything before the arrival of the customer
order. (Less)
Please use this url to cite or link to this publication:
author
Hellström, Björn and Janukiewicz, Jakob
supervisor
organization
course
MIO920
year
type
M1 - University Diploma
subject
other publication id
09/5321
language
Swedish
id
1978355
date added to LUP
2011-06-16 16:15:29
date last changed
2011-06-20 12:30:32
@misc{1978355,
  abstract     = {Oatly is a company that produces and sells oat based products. Their
most selling product is the oat drink, which is a substitute to milk,
and over 80 percent of the annual sales volume comes from this
product. Since the foundation of Oatly, the main idea has been to sell
their products on markets with low milk availability and milk
consumption. Most recently, Oatly identified the Chinese market as a
way of expanding their business. There has not been any long and
widespread consumption of milk in China, but this is about to
change. The last couple of years, the increasing wealth of the Chinese
people and the positive health effects from milk, have lead to a
dramatic increase in the consumption of milk in the country. The
supply of the milk cannot meet the high demands from the market,
which is why Oatly now see great potential for their products. Most
of the Chinese people are also lactose intolerant, which makes them
sensitive to milk. This also contributes to why Oatly see potential in
their products, which are lactose free.
As a first step, Oatly plans on joining the Chinese School Milk
Program (SMP), which is a program run by the Chinese government.
The purpose of the program is to improve the health of the Chinese
people by providing children with milk in schools, and to develop the
milk industry in the country.
Oatly has to identify and map the processes of the SMP to be able to
expand on the Chinese market. This process mapping is thereafter
used to design the future supply chain.
Purpose: The purpose of this thesis is to map the processes within the SMP,
and investigate how these processes affect a supplier’s design of its
supply chain.
Methodology: The research has been conducted as a case study, with an explorative
and a descriptive purpose. The primary data has been gathered by
interviewing people involved in the SMP in China, and people from
Oatly’s organization in Landskrona. The secondary data has been
gathered by reading books, articles, internet publications and inhouse
documents.
Conclusion: Oatly’s supply chain should be cost minimizing, because of the
processes of SMP and their effects on the supply chain. Oatly should
design their supply chain so that it is physically efficient and stabile,
rather than being market responsive and flexible. One of the main
reasons for this, is that products within the SMP have to be sold at a
price 25-30 percent lower than the regular market price, and that the
demand of the school milk is relative stable which makes it easy to
predict the demand. The production should be directed by actual
customer orders, which is done be having the customer order point
in the beginning of the supply chain. The main reason for this, is that
customer orders arrive a long time ahead, which makes it
unnecessary to produce anything before the arrival of the customer
order.},
  author       = {Hellström, Björn and Janukiewicz, Jakob},
  language     = {swe},
  note         = {Student Paper},
  title        = {Kinesiska skolmjölksprogrammet – Förutsättningar för en framtida leverantör},
  year         = {2009},
}