Essay on Geographical Distance & Role of Supply Chain

Running head: ESSAY ON GEOGRAPHICAL DISTANCE & ROLE OF SUPPLY CHAIN
Essay on Geographical Distance & Role of Supply Chain
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1ESSAY ON GEOGRAPHICAL DISTANCE & ROLE OF SUPPLY CHAIN
This essay intends to examine how people are interdependent to other people of
distant places through the FMCG products that are being used daily. It is no secret that for the
last 50-60 years the business environment has been transforming at a large scale due to the
technological advancement. Every business has become global in terms of approach and
profit too. While executing business activities multinational food firms in one hand recruiting
a mass of people yet treating them poorly like slave labours. There are several range of
products, which are produced in Canada as well as are being imported to the country. These
products may be the reason behind environmental degradation and universal climate change
during processing.
The chosen product is Kit Kat chocolate from Nestle Company (Nestle.com, 2018).
This essay will try to find out if the company is maintaining their fair trade policy as per
commitment, in order to serve social and environmental sustainability purposes. Apart from
providing the workers a good work atmosphere, a company receives fair trade certification
only if they can prove that their commitments on selling foods and drinks are being
maintained and following a sustainable procedure. This information are important in terms of
choosing better products for consumption and creating a better world as well.
Consumer power is immense as far as choosing the right FMCG products is
concerned because it is a proven fact that consumer choices according to nutritional benefit
offered by the product, help to build a better world (Hersheys.com, 2018). While searching
for controversies against the fair production and marketing of this particular chocolate brand,
no such allegation can be identified. The company, Nestle is committed towards consumers
and stakeholders to provide necessary information of raw materials that are being used
through effective sourcing activities for ensuring integrity and both the social and
environmental sustainability for the organization (Sjauw‐Koen‐Fa, Omta & Blok, 2018).
There are several challenges while executing sourcing activities in a responsible way.

2ESSAY ON GEOGRAPHICAL DISTANCE & ROLE OF SUPPLY CHAIN
Working with global chain of farmers and ensuring long term, adequate supply of raw
materials is not a simple thing. The company’s sourcing complies with the criteria of
responsible sourcing standard. This guideline helps Nestle to focus on critical aspects of
social, environmental sustainability issues along with financial and animal welfare
challenges, which are closely related to supply of products, lifestyle and sustainability
practices (Mithöfer et al., 2017). In order to keep the sourcing programs responsible and
unique Nestle connects with the finest Cocoa agricultural land farmers directly and
establishes long-term supply commitment. It makes the supply chain strong and help to meet
with the requirements of social and environmental ethics. Farmers and land agricultural
activities receive a commercial platform and this raw material sourcing helps in sustainable
development of agriculture as well. Cocoa is one of the twelve raw materials, which Nestle
imports via souring activities.
As the objective is to comply with sustainability regulations, according to Deppeler,
Fromm and Aidoo (2014, June), Nestle needs to treat several serious challenges regarding
Cocoa supply chain. It includes low wages for farmers, child labour and gender
discrimination. As it is one of the most essential ingredient of Kit Kat chocolate, as argued by
Gockowski et al. (2013), Nestle has addressed these issues by implementing Nestle Cocoa
plan in supply chain. The cocoa plan targets to improve the condition of the farmers as most
of them are small landholders with both the low income and productivity. With the interest of
earning more money, they involve their children into tiring agricultural jobs, which work as
blockage in front of their physical and mental growth. Further, women receives low wages as
compared to male workers and evidently, they do not have any voice to raise against this
practice. With both the purpose of sourcing and sustainability, as per Otchere, Annan and
Quansah (2013), Nestle concentrates on two largest Cocoa producing countries, Côte d’Ivoire
and Ghana.