Fairlife Milk Supply Chain Analysis

This assignment analyzes the supply chain of Fairlife Milk, focusing on its strengths, weaknesses, opportunities, and threats (SWOT). It examines the growing market for healthy food products and provides recommendations to improve supply chain management, ensuring profitability and sustainability. The analysis involves reviewing literature on supply chain management, functional foods, and industry trends.

Running head: FOOD MARKETING DEVELOPMENT
FOOD MARKETING DEVELOPMENT
Name of the student
Name of the university
Author note

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Executive summary:
The aim of this report was to analyze the potential growth of a chosen food product in the
industry considering the updates from the recent history and evaluate the existing and the
potential supply chain management involved in the business procedures. A web survey helped us
determine the objectives. The results indicate the strength and limitations of the existing supply
chain. This report concludes, suggesting a few recommendations towards the sustainability of the
products in the food industry.

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Table of Contents
INTRODUCTION:..........................................................................................................................3
DISCUSSION:.................................................................................................................................3
Justification of Product Selection:...............................................................................................3
Explanation of Supply Chain:......................................................................................................4
Evaluation of the Supply Chain:..................................................................................................5
Relevant Theories and Methodologies:.......................................................................................6
Recommendations:......................................................................................................................7
CONCLUSION:..............................................................................................................................8
REFERENCES:...............................................................................................................................9

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INTRODUCTION:
The food product industry comprises multi-aspect processing techniques. The food
industry is a complex structure collectively comprising diverse supply companies providing the
maximum quantity of food consumed global population. This industry comprises of crucial
aspects that needs attention, among them, food processing and marketing are two noticeable
criteria worth a discussion. The US consumer packaged goods (CPG) industry recorded its
strongest and potential growth in the recent four years in the year of 2015. The much of the effort
contributed are registered to be from the small and the medium sized producers owning their
market expertise in healthy and protein-rich foods simultaneously with beverages. This sector
also consisted of an important enlistment that is of ‘mindful’ snacks- a growing demand. These
are the top performers in the food industry (Stuckler and Nestle, 2012).
Among the competitors, the pre-mentioned companies those can be listed down are quest
nutrition, Fairlife, Bai, Vita Coco and Sargento foods. All of these are known to target the market
with the healthy options in the food department. For this report, the Fairlife brand for its milk
cans is chosen for further required analysis.
DISCUSSION:
Justification of Product Selection:
Among the brands supportive towards a healthy diet, the brand Fairlife is performing
potentially well especially the supplied Milk from the firm is building a stature in the market. An
interesting phenomenon has been witnessed to unfurl in the recent history of global food market
or industry with respect to consumer demands for healthier options. In reference to Euro-

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monitor, global record of sales regarding health foods is likely expected to amount around $1trn
in 2017.
The Fairlife super Milk is a lactose free product. Fairlife firm is working well
surrounding the promotion of their milk in the market. The web sales also attained heights for the
product. As witnessed, the fast food and the beverage sectors have recorded a sudden drop in
their sales. Even revenues hit a rough patch of 7% for the coca-cola industry. Researches and
analysis helps us discover that in US, CPG sales incremented by 3.1% by 2015 to an equivalent
amount of $670 billion. The information statistics is well received from the Boston Consulting
Group (BCG) and Information Resources, Inc. (IRI), which they have analyzed based on the
sales figure. The persistent growth of these small and mid-sized companies was achieved through
the potential to acquire a wider range of distribution for their products according to the data
collected. However, it is critical to witness that the healthy food marketing is majorly upgraded
in the developed economies (Monteiro et al., 2013). According to the studies prevailing in the
Cambridge University, healthy eating is expensive compared to other indulges. With emerging
trend towards the healthier options, there are some recorded winners especially, the gluten-free,
non-GMO and paleo products are rapidly growing, as in the UK, food industry the rise of organic
grocery and the whole foods market has witnessed a hike in the revenue scale.
Explanation of Supply Chain:
Effective logistic strategy for the food industry, here in specific, Fairlife Milk has the
ultimate end goal regarding the supply chain management that is to allow the correct inventory
management for each commodity or segment involved in the supply chain oriented with the
deliverables. The distribution of the Fairlife Milk, has witnessed a strong growth. This is actually
responsible for a major portion of development oriented around the dairy product category.

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Although, it is twice as costly as any regular dairy product, still customers are realizing the
benefits involved in the same. Some witnessed and existing practices followed in the food
industry to maintain the supply chain management is worth a discussion, as firstly, the demand
forecasts maintenance- generally, this is detrimental from the past patterns of demands and sales,
however, reconfiguration in demands and sales are witnessed in a growing business. Few factors
involved in this process are the gaining or losing customers with the changing popularity for a
brand, new launches and short-term increase through promotions. Marketing strategies and
approaches have witnessed an evolution regarding the Fairlife Milk- advertisement, with a
persistent product message.
The procedural acts regarding the safety management included in the food industry in the
recent years has truly witnessed a visible development. Procurement is an international step,
which demands complete transparency in the details of the supply chains (Bigliardi and Galati,
2013). The supply chain engaged with the food processing involves methodologies, which can be
charted or tabulated. This highlights the activities involved in an efficient supply system. First
concern is to evaluate the availability of the resources that support the food production arena
involving all the safety and innovative measures under complete surveillance, which then
advances to the distribution and aggregation units to transfer it to the food processing segments
(Nestle, 2013). All these steps prove to be beneficial only with the support of a sound marketing
to attract the customer base. Another approach exists through the online benefit for the execution
and sales related to a product in the recent history, increasing the customer base in an ample
amount, wherein the logistic issues are dealt via mails processed within the code of policies
(Goldberg, 2012).

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Evaluation of the Supply Chain:
To comment and understand the benefits or shortcomings this strategic management for
Fairlife-Milk, needs an evaluation. On elaboration, through the advantages and disadvantages
involved, the evaluated information found is tabulated herein for the modern multichannel
retailers and the online procedures.
The Pros The Cons
Is able to access and maintain high-level
competitive advantages
Large scale is essential for the offset of standard
fixed price
Investment oriented is low and a focused system
is achieved
Solutions limited for a hyper-growth
Potential synergies are involved Incompatible with E-Commerce
Manage control to maintain operational
management with competitive advantages
Synergies are often over-stated
Leverages the existing customer relationships Third party logistics pricing influences a return to
retailer
Eliminates any distraction in business end Challenging to implement multi-route experiences
Table 1

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Relevant Theories and Methodologies:
A SWOT analysis would provide enough information to discover the strengths,
weakness, opportunities and threats relative to the existing supply chain model for the Fairlife
Milk, marketed on the customer demand and customization (Hall and Howe, 2012). The key
pointers categorized as the strengths can be charted foe a quick review of the same.
Strengths Demands prove strong and unique selling, supply
chain management seems profitable, online
purchase available, good service standards
Weaknesses Path dependencies, high-price- targeting a specific
group of customers
Opportunities Updating online purchase, diverse product types
to launch with quality specifications, organic
products can be included
Threats Online retailing process, competition set on
costing, contemporaries are efficient
Table 2 : SWOT Analysis
The tabulated information provides an insight on the genres to be revised to provide the
sustainability of the growing market for the healthy food products.
Recommendations:
Based on the SWOT analysis, it would be appropriate to suggest set of recommendations
that would be supportive in the improvement of the supply chain management to sustain the
profitability chart for the Fairlife Milk (Aung and Chang, 2014). Firstly, the idea of innovation
should exist in the work culture, supply chain managers should engage with suppliers, possessing

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the potential and interest to help produce new products and types strengthening the competencies
and sealing the opportunity to evolve. Segmentation must be applied to supply base to determine
the correct partners to support sustainability. Online purchase trends in increasing the demand for
online marketing; supportive software is available to remain updated. Utilizing the correct metric
is important in maintaining the revenue involved in the business (Stadtler, 2015). Involving the
employees is always beneficial for team as diverse recommendations emerge out. Proper
integration of sales, finance and operational management activities can help to deal with the
concerned threats. An appropriate market research is important in determining the necessities
and methodologies for growth.
CONCLUSION:
On analysis of the literature and the importance and methodologies involved in the
supply chain management, it can be concluded that the there is a persistent growth rate witnessed
for the chosen food product that is the Fairlife Milk. The supply chain involved is proving to be
beneficial following the customer demands oriented. Few recommendations for the improvement
and sustainability is suggested, which should be implied, using proper action plan.

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REFERENCES:
Aung, M.M. and Chang, Y.S., 2014. Traceability in a food supply chain: Safety and quality
perspectives. Food control, 39, pp.172-184.
Bigliardi, B. and Galati, F., 2013. Innovation trends in the food industry: the case of functional
foods. Trends in Food Science & Technology, 31(2), pp.118-129.
Goldberg, I., 2012. Functional foods: designer foods, pharmafoods, nutraceuticals. Springer
Science & Business Media.
Hall, G.M. and Howe, J., 2012. Energy from waste and the food processing industry. Process
Safety and Environmental Protection, 90(3), pp.203-212.
Monteiro, C.A., Moubarac, J.C., Cannon, G., Ng, S.W. and Popkin, B., 2013. Ultra‐processed
products are becoming dominant in the global food system. Obesity reviews, 14(S2), pp.21-28.
Nestle, M., 2013. Food politics: How the food industry influences nutrition and health (Vol. 3).
Univ of California Press.
Stadtler, H., 2015. Supply chain management: An overview. In Supply chain management and
advanced planning (pp. 3-28). Springer Berlin Heidelberg.
Stuckler, D. and Nestle, M., 2012. Big food, food systems, and global health. PLoS
medicine, 9(6), p.e1001242.

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