Pepper & Mint: Supply Chain Analysis and Operations Management Report

This report presents a comprehensive analysis of the supply chain for Pepper & Mint, a kids' clothing business. It begins with an introduction and background, outlining the company's mission to offer designer clothes at reasonable prices and its commitment to corporate social responsibility through donations to NGOs. The report then details the supply chain map, highlighting the flow from raw materials to the end customer, including the roles of suppliers, factories, distributors, retail stores, and NGOs. It discusses challenges encountered in sourcing raw materials, factory operations, distribution, and attracting customers. The report also identifies and describes the first, second, and third-tier suppliers involved in the production process. The conclusion summarizes the key operations, challenges, and the company's initiatives to overcome them, such as implementing advanced technology and hiring experienced trainers to reduce raw material wastage. The report is supported by references to relevant literature on supply chain management and retailing.

Operation Management
8/14/2019

Table of Contents
Introduction................................................................................................................................2
Background of Pepper & Mint...............................................................................................2
Supply Chain Map..................................................................................................................2
Supply Chain..........................................................................................................................3
First Tier Suppliers.................................................................................................................5
Second Tier Suppliers............................................................................................................5
Third Tier Supplier.................................................................................................................5
Conclusion..................................................................................................................................5
References..................................................................................................................................7

Introduction
The intent of this paper is to present a supply chain of a new venture with the name
Pepper & Mint by describing the part of partner involved in the operations. The business is a
clothing business that manufactures and sells clothes for kids. The report is focusing on
discussing the issues that managers experienced while designing the supply chain. In addition
to this, the report is also discussing about the first and second tier suppliers in the business.
Background of Pepper & Mint
The Pepper & Mint is the business that is involved in the manufacturing and selling of
the clothes for kids from the age group of 2 months to 16 years old. The motive of the
business is to offer classy and designer clothes at reasonable prices to give strong competition
to the existing high class brand that offer products at high prices. Besides this, the business is
focused towards meeting its corporate social responsibility by offering a separate slot of
designer clothes for the orphan through different NGOs.
Supply Chain Map

Supply Chain
The supply chain of Pepper & Mint is comprised of different operations and supplies
that will support the company in loving the products from the production unit to end-users
(Li, 2011). The supply chain of the company involves raw material suppliers, manufacturing
unit/factory, distributors, NGOs, Retail stores, and customers. While designing the supply
chain, the management of the company experienced number of issues some are explained
below:
Sourcing of Raw Material – At this stage of the supply chain, the company will source
the raw material such as cotton, fabric, and other important equipment from the farmers and
suppliers at reasonable prices (Tucci, Afuah & Viscusi, 2018). The issue that the management
Raw Material Factory Distributor Retail Store
Customer
NGO
Upstream
Supply
Downstream
Supply

of the company experienced is to identify the suppliers that can offer quality raw material and
machinery.
Factory – Factory of the business perform a major role in the business as the
production of the final products takes place at this place. The production is the procedure of
converting raw material into final product. In the initial phase of the business, the major
challenge is to reduce the waste of raw material due to lack of training. However, the
management has planned to implement machinery that can reduce wastage and experienced
trainer who can train the employees in the manufacturing of products.
Distribution – Distribution is the procedure of making the product available to the
business or customer who requires it (Kersting, 2017). This step is also the part of
downstream supplies where the distribution of the products takes place. The company has
planned to make a distribution team that will be responsible to provide the delivery of the
products to the retail stores of Pepper & Mint and associated NGOs. The major issue at this
place is the safe delivery of the products to the location without any damage.
Retail Store – Retailing is the procedure of selling the finished products to the
customers (Dunne, Lusch & Carver, 2010). The stores of Pepper & Mint has established in
first retail store in the Paragon Shopping Centre of Singapore.
NGOs – NGOs are the non-government organizations that operate for the
development and welfare of the society. Pepper & Mint will collaborate with the NGO to
offer one slot of its manufactured products to the orphan.
Customers – Customers are the one who purchase the finished product from the
business in exchange of money. The end user of the company is parents and kids. The issue

that company experienced is to attract maximum number of customers to purchase the
product. In order to resolve this, the company is involved in the promotion of the products.
First Tier Suppliers
First Tier suppliers are the businesses or company that offer raw material and
equipment directly to the production unit (Monczka, 2010). The first tier supplier of Pepper
& Mint is that unites that are involved in the cutting and sew production units.
Second Tier Suppliers
Second tier suppliers are those who supply parts or material to another business that
then supplies to the manufacturer. In the clothing business of Pepper & Mint, the second tier
suppliers are those involved in the embroidery, printing and laundries.
Third Tier Supplier
Third tier suppliers are the focal suppliers of the company. For the Pepper & Mint the
third tier suppliers are dye houses, spinning mills, and fabric mills.
Conclusion
The above report has provided the brief description of the supply chain and the
involved partners in order to under the main operations of the company and the issues
management has experienced in designing it. The analysis has highlighted that the company
is involved in the manufacturing as well as retailing of the clothes of kids. The company not
just operate business for the profit, it also contribute in the development of the society by
donating a slot of clothes for orphans from NGO. Further, the management of the company
has experienced some of the challenges in designing its supply chain such as contacting with
experienced suppliers for the raw material sourcing, wastage of raw material, etc. To

overcome the issue of wastage the company has equipped an advanced technology and hired
experienced trainer in the manufacturing unit.

References
Dunne, P.M., Lusch, R.F., & Carver, J.R. (2010). Retailing 7th ed. U.S: Cengage Learning.
Kersting, W.H. (2017). Distribution System Modeling and Analysis 4th ed. U.S: CRC Press.
Li, P. (2011). Supply Chain Management 2nd ed. U.S: Books on Demand.
Monczka, R.M. (2010). Purchasing and Supply Chain Management 1st ed. U.S: Cengage
Learning EMEA.
Tucci, C.L., Afuah, A., & Viscusi, G. (2018). Creating and Capturing Value Through
Crowdsourcing 1st ed. U.S: Oxford University Press.